Governors look to Obama for relief

PHILADELPHIA – Barack Obama’s first formal visit as president-elect with the nation’s governors Tuesday is likely to be shorter on congratulations than it is on pleas for money.

Not so long ago, it was Obama who was knocking on the doors of governor’s mansions asking for support – both political and financial. But now the tables are turned, and it is the president-in-waiting who will no doubt face requests from revenue-strapped chief executives suffering from an economic downturn that on Monday was officially declared a recession.

The National Governor’s Association invited Obama to its annual conference largely to insure they get their share of his proposed economic stimulus package, as states across the nation reel in the face of brutal financial conditions.

Obama spent about an hour mingling with members of the Democratic wing of the NGA Monday night, including Pennsylvania Gov. Ed Rendell. The private meet-and-greet at the Philadelphia Visitors Center was closed to the press.

Governors have been feeling the economic downturn for some time. Facing increasing revenue shortfalls, states have had to cut billions in jobs and services over the past few years to balance their budgets.

Already this fiscal year, the NGA says 18 states have had to cut their budgets by $5.5 million. State leaders say they expect it will only get worse.

Obama has said that local and state governments are key to turning around the economy.

“We are going to have to make sure that we are investing in roads, bridges, other infrastructure investments that lay the groundwork for long-term economic growth,” Obama said at a news conference last week.

“And one of the things that we're going to also want to make sure of is that as part of our economic plan, that we are fast-tracking some of these projects.”

What Obama has not said, however, is how much his economic stimulus package will cost or how he will pay for it, given that the federal government’s budget deficit is heading toward $1 trillion.

Obama has said he will provide more details in coming weeks as his newly-named economic team puts the proposal together.

On Tuesday morning, Obama and Vice President-elect Joe Biden will attend a closed-door meeting with chief executives from red and blue states. Obama, Biden and Rendell are expected to make remarks but not to take questions from reporters.