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Obama Attempts to Ease Governors' Economic Worries

December 02, 2008 2:21 PM

ABC News' Matt Jaffe Reports from Philadelphia:

Just one day after the nation was officially deemed to be in a recession, President-elect Barack Obama met with the nation's governors Tuesday in Philadelphia, pledging to work quickly on an economic recovery package to help their states survive the financial crisis.

"To solve this crisis and to ease the burden on our states, we're going to need action and we're going to need action swiftly," Obama said. "That means passing an economic recovery plan that helps both Wall Street and Main Street. And this administration does not intend to delay in getting you the help that we need."

Last week Obama unveiled his economic team, urging Congress to have a massive stimulus package ready for him "right away" when he is inaugurated January 20th, and he has announced a plan to produce 2.5 million jobs in his first two years in office.

"We intend to help save or create 2.5 million jobs," Obama continued today. "We intend to put tax cuts into the pockets of hard-pressed middle-class families in your states. And we intend, as has already been discussed, to start making a down-payment on the critical investments that are going to be necessary to sustain long-term economic growth, as well as pull us out of the current slump."

"As president, I'm not simply asking the nation's governors to help implement our economic plan," he assured them. "I'm going to be interested in you helping to draft and shape that economic plan."

The nation's governors want to make sure any economic stimulus package provides help for their states. 20 states have already cut over $7 billion from their 2009 budgets and 30 states expect additional short-falls totaling more than $30 billion.

"41 states that are represented here are likely to face budget short-falls this year or next, forcing you to choose between reining in spending and raising taxes," noted the President-elect. "Jobs are being cut. Programs for the needy are at risk. Libraries are being closed. Historic sites are being closed."

Obama, accompanied by Vice President-elect Joe Biden, promised his bipartisan audience that, as president, he would work with both Republicans and Democrats alike.

"I offer you the hand of friendship, the same commitment to partnership as a do my Democratic colleagues," he told Republicans. "There is a time for campaigning, and there is a time for governing. And one of the messages that Joe and I want to continually send is that we are not going to be hampered by ideology in trying to get this country back on track."

In his introduction of Obama, Biden made special mention of one governor in particular: his former opponent, Alaska Gov. Sarah Palin.

"I want to thank all of you for being here," Biden told the assembled governors. "And Governor Palin, I want to thank you particularly."

"I might point out, as I told you, we walked in. Since the race is over, no one pays attention to me at all. So I'm -- maybe you will walk outside with me or something later and say hello to me," joked Biden as the crowd laughed. "It's great to see you, Governor. Thank you."

The Vice President-elect called the bipartisan presence at the summit "a metaphor for the fact that this election is over."

"We're all dealing with a common problem," Biden said. "We're all -- this is not, as was stated so many times by all of you and us, this is not a Democrat or Republican problem. We've got ourselves a problem."

He noted that the states must adhere to their budget constraints, unlike the federal government that can go into debt.

"You all, as you've pointed out, don't have the flexibility the federal government has, which I assume that means you're not going to criticize us for running a deficit to help you,” Biden said.

"I know none of you would do that," he joked. "But all kidding aside, you know, we -- we think there's a need for a different relationship between the federal government and the governors."

Today's Philadelphia summit was hosted by Pennsylvania Gov. Ed Rendell, who thanked the President-elect for requesting the meeting.

"This is an unprecedented opportunity you're affording the nation's governors to have input on something that we believe is crucial to beginning the process of turning this country’s economy around," said Rendell.

Along with Palin, among the other notable governors listed as attendees on the seating chart were Schwarzenegger, Patrick, Sebelius, Kaine, Jindal and Pawlenty.

Arizona Gov. Janet Napolitano, Obama's pick to lead the Department of Homeland Security, was also listed in attendance. New Mexico Gov. Bill Richardson, a leading candidate to be named Obama's Secretary of Commerce, was not.

Following the opening remarks of Rendell, Biden, and Obama, the rest of the governors' meeting was closed to press.

"I think, at this point, the press may be leaving so you guys can actually tell me what you believe," Obama concluded at the end of his remarks.

-- Matt Jaffe

December 2, 2008 | Permalink | Share | User Comments (10)

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Kat, actually, he has pretty consistently referred to "create or save" jobs of late. That was the phrase used in his weekly radio/You Tube address on Nov. 22 AND in his Thanksgiving address. (The man does like to give addresses, now doesn't he?) Sorry, but he's a lawyer and a politician and these are not "just words," as the man himself so famously put it. Its not just a phrase that pops out when his safe teleprompter is not available-- besides, I think these were prepared remarks he was reading from something, whether it was a paper before him or a teleprompter.

Posted by: moderate | Dec 3, 2008 10:52:09 AM

Hey al:

Here's how the Republicans ran the federal government.

$421 Billion OVER BUDGET (2002)
$555 Billion OVER BUDGET (2003)
$596 Billion OVER BUDGET (2004)
$554 Billion OVER BUDGET (2005)
$574 Billion OVER BUDGET (2006)

Quit complaining about Democrats unless you like the label 'hypocritical'.

Posted by: pefros | Dec 2, 2008 10:01:45 PM

the blue states are the most in debt, and you can bet us red states will have to bail them out

Posted by: al | Dec 2, 2008 8:08:55 PM

Moderate - From what I've read, I recall a consistent use of meaning with terms, like creating jobs or producing jobs. On the transition website it states unequivocally that the goal is to create jobs. He wasn't reading from a teleprompter today and stuck in save or create. I would be concerned if "save or create jobs" actually became a part of his vernacular when talking about the economy, but that's just not the case.

Posted by: kat | Dec 2, 2008 7:59:30 PM

It is good to see such a meeting. Only time will tell what comes of it, but I'm willing to assume that an Obama administration really will work cooperatively with the states. That would be helpful.

I'm struck, however, by Obama's constant references (here and in previous public statements) that he plans to "SAVE or create 2.5 million jobs." (emphasis mine) He keeps adding that "save" word-- is that to give him wiggle room? If the number of jobs does not go up, or continues to go down, in the first years of his administration, will he then claim that he saved millions of jobs that might have been lost? And how would we be able to determine the accuracy of such a claim? If the jobs do not go, how do we know they would have gone? It sounds like typical lawyer/politician excess cleverness to me-- you know, the "it depends on what you mean by is" stuff that drives me crazy.

Posted by: moderate | Dec 2, 2008 6:55:23 PM

I have a bailout plan idea - take all of the money that was to go to the big stupid short-sighted companies and divide it equally AMONG REAL TAX PAYING AMERICANS. We would take that money and buy new cars, make new investments and buy all the crap that the Wal-Mart's and Macy's has to offer. Talk about stimulating the economy silly. and it wouldn't even take batteries...

Posted by: DaveM | Dec 2, 2008 5:54:13 PM

Obama, I thank you for being a good and a fair man. I'm sure the good people of the world can work wth you.

Posted by: jtrace | Dec 2, 2008 3:53:36 PM

true that. and for those of u who just can't pass up an opportunity to criticize, be mindful that obama is offering aid to republican governors. if while their states were failing, they refused help because of presidential hopes in 2012 (they wanna accuse him of being a big spender), then their constituents will turn on them and they'll be shot down even before attempting to fly. If on the other hand, they accept the money but try to say obama was a big spender, he'll just point out that they were singing a different tune when they were getting funding to honor their constitutions to balance budgets. either way, they're boxed in. so stop before you begin.

now for the serious amongst you, i like the framework obama's set up so far for funding. States will experience with new ideas and if they can demonstrate tangible, satisfying results, then they get funding. But they don't just get money. That way, washington is responsible and doesn't just throw money away, and leaves the investment in ideas for states, which are closer to the people and what they go through everyday. it's a brilliant framework between a pragmatic washington and realist creative states.

Posted by: lupercal | Dec 2, 2008 3:19:08 PM

I would like to hear more, especially the specifics on Obama's plan to produce 2.5 million jobs in in his first two years of office. I'm assuming he's referring to infrastructure jobs arising from the establishment of the National Infrastructure Reinvestment Bank. Until the specifics are communicated, one can only assume and make speculations. Maybe I should just ditch my NIRB bender, which is beginning to feel too much like soliloquy.

Posted by: kat | Dec 2, 2008 3:05:09 PM

"unprecedented"!

'nuff said...

Posted by: bah | Dec 2, 2008 2:38:47 PM

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