Governors Appeal for Emergency Assistance; State Revenues Sank After Terror Attacks
The nation's governors, alarmed by a steep decline in revenues last month, appealed yesterday to Congress and the Bush administration for emergency assistance. Unless help comes soon, they warned, states will have to slash their spending, thereby increasing the risk of a serious recession.</br></br>Michigan Gov. John Engler (R), the chairman of the National Governors Association, told reporters in a conference call from Lansing that since the Sept. 11 terrorist attacks, many states have seen a double-digit drop in tax receipts compared with a year ago.</br></br>The governors suggested steps they would like to see included in the stimulus package being drafted on Capitol Hill, with the blessing of the Bush administration.</br></br>In addition to expanded unemployment, health and other benefits for families of laid-off workers, they asked for relief from some federal regulations and the suspension of state matching requirements on major federal highway, airport and other construction programs.</br></br>Engler and Kentucky Gov. Paul E. Patton (D), who is vice chairman of the governors association and presented the program to members of Congress yesterday, emphasized that unless help comes soon, balanced- budget requirements in most state constitutions will force program cuts and layoffs, deepening the economic slump.