State governors today will press their case for federal help when they meet Barack Obama , the US president-elect, one day after official confirmation that the American economy is in recession. Governors from the 50 states are seeking at least $40bn (£27bn) to help pay for healthcare for the poor and disabled, and $176bn for infrastructure projects such as road and bridge repair. "We're going to be talking about what the elements of an economic stimulus plan will be," Deval Patrick, the governor of Massachusetts and a Democrat with close ties to Obama, said. States have suffered big cuts in tax revenues, forcing 43 of the 50 states into budget deficits. Since virtually every state is legally obliged to balance its budget, governors have had to cut services, lay off workers and consider tax increases. Such moves only make the economic situation more difficult, the governors say. "Without federal help ... what we will have to do is just make continuing cuts and/or raise taxes, both of which would have a further deleterious effect on our states' economy. We simply need help," Ed Rendell, the chairman of the national governors association, a Pennsylvania Democrat, told reporters. "When the economy is bad, the social service net demands grow." The meeting in Philadelphia comes as Obama and Democrats controlling Congress are drawing up economic recovery legislation that could cost $500bn. The measure is virtually certain to contain hel ...
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