Stimulus Isn’t Enough to Fix State Budget Woes, Governors Say

Feb. 21 (Bloomberg) -- Aid to state governments in the $787 billion economic stimulus signed by President Barack Obama this week won’t be enough to balance budgets as costs rise and tax revenue shrinks, governors meeting in Washington said.

Governors welcomed the $787 billion stimulus legislation signed into law Tuesday by President Obama as a source of much- needed, albeit temporary, financial assistance. About $100 billion of that is set aside for state road building, bridges, and other infrastructure spending.
Putting the money in context, Montana Governor Brian Schweitzer, a Democrat, said the stimulus will add about 5 percent to what his state usually gets in federal spending.

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