State legislators urge quick passage of federal stimulus package

Minnesota Speaker of the House Margaret Anderson Kelliher, DFL-Minneapolis,is one of 37 state legislative leaders who signed a bipartisan letter this week to the leadership of the U.S. Congress, urging quick passage of President-elect Barack Obama’s proposed $800 billion economic stimulus package.

"Solving the economic challenges in our country requires bold action and a partnership among all levels of government," the legislators wrote. "Temporary and targeted federal assistance to states and individuals is critical in a time of deteriorating state budget conditions."

Minnesota alone is facing a $4.8 billion shortfall for the 2010-11 biennium, along with a $426 deficit for fiscal 2009.

The letter, addressed to Senate Majority Leader Harry Reid, Senate Minority Leader Mitch McConnell, House Speaker Nancy Pelosi and House Minority Leader John Boehner, specifically mentions the importance of a "significant" federal investment in U.S. infrastructure projects, which would "create jobs and satisfy identified public needs."

"We recommend an immediate investment in transportation and public infrastructure, clean water and safe drinking water projects, public university facilities and a temporary waiver of state matching requirements to ensure that these projects get started quickly," the letter reads.

The letter also supports a temporary increase in the federal Medicaid match for those who have lost health-care coverage because of the economy, along with supplemental food stamp benefits and extended unemployment insurance benefits.

In addition to those two priorities, the letter points out the challenges facing states in the form of unfunded federal mandates, and asks that Congress appropriate 40 percent of costs for special education. "We further urge you to re-establish state authority to use incentive payments to draw down federal funds to assist states with collections of child support payments that provide immediate assistance to working families," the letter says.

Obama’s package, which he is pitching to congressional leaders this week, would include not only the priorities outlined in the legislators’ letter, but would provide tax credits of $1,000 for working families and $500 for individuals and an extension of expired business tax breaks from the 2008 economic stimulus package signed by President Bush.