by Peter Hecht
Longshot Democratic presidential candidate John Edwards, who recently let Gov. Arnold Schwarzenegger have it over the governor's proposed cuts in education and health care, is now telling Schwarzenegger to sign onto his plan to help bail out California's ailing economy.
In a letter today to Schwarzenegger, Edwards calls on the Republican governor to embrace his call for federal assistance to financially beleaguered states, including California. Edwards' plan calls for $2.4 billion in federal aid to help the state out of its budget crisis.
Edwards' letter follows:
January 29, 2008
Dear Governor Schwarzenegger:
As you know, this week Congress is debating important legislation to create jobs and restart the economy. I am writing to urge you to join me in calling for federal financial assistance to California as part of this plan. California needs our help now.
Back in December, I proposed a plan that would increase the federal contribution to Medicaid and provide additional aid to states, helping them avoid cuts to education, health care and other basic services and avoid increases in property and other taxes that disproportionately impact working families and seniors on fixed incomes.
In contrast, the kind of stimulus plan requested by President Bush and now working its way through Congress is another example of Washington deserting working people and the middle class. It gives $50 billion of tax breaks to businesses, doing nothing for those who have lost their jobs. It is a complete disconnect between what's happening in Washington and what is happening in California and across the country.
California is facing a budget deficit of $14.5 billion in the next fiscal year. Without help from Washington, the state legislature will have little other choice but to make cuts to essential services like health care and education. Under my plan, California would receive approximately $2.4 billion in direct aid to help avert those cuts and stimulate the state's economy.
Federal assistance to the states provides more "bang for the buck"
than almost any other form of short-term economic stimulus. It provides five times more economic benefits than business tax breaks, according to a study by Mark Zandi of Economy.com. Nobel Prize-winning economist Joseph Stiglitz reached a similar conclusion in a recent New York Times op-ed essay emphasizing extending unemployment insurance benefits and direct aid to states and localities.
I also believe that the economic stimulus package should expand unemployment benefits to cover more poor families and those who have lost their jobs. Otherwise we are going to have thousands and thousands of families across our country who don't get the unemployment help they need, though they lost their jobs through no fault of their own. We also need tax rebates that provide no less to low-income families than to the rest of us, new investments to build infrastructure for the clean energy economy that will create jobs and fight global warming, and more help for the millions of families facing foreclosure.
President George Bush opposes state aid, but Congress needs to stand its ground. I urge you to join me in insisting on a plan that provides direct financial assistance to California.
Sincerely,
John Edwards
@Nyx.CommentBody@