Speaker Bass, Senate Leaders Steinberg and Perata Ask Governor Schwarzenegger to Make Federal Stimulus a Priority

October 17, 2008 @ 9:02 PM

Speaker Karen Bass and the incoming and outgoing Senate President pro Tems, Darrell Steinberg and Don Perata, today sent a letter to Governor Arnold Schwarzenegger asking the Governor to make accessing economic stimulus from Congress a top priority. California, which in recent years has only gotten 79 cents for every dollar it sends to Washington, faces a multi-billion budget shortfall next year. The Wall Street banking crisis and sub prime mortgage crisis, which of course are interlinked, have already sharply contributed to declining revenues from housing, income, payroll, and sales taxes with an upturn in the need for social services, leaving the state in a perilous situation.

"We respectfully request that you urge Congress to make state aid—aimed at boosting the economy of states—the focus of the most recent economic stimulus measure initiated by Congress and now being discussed in Washington," the Democratic leaders wrote. "We strongly believe that the measure must empower states like California to protect taxpayers while generating thousands of sorely needed new jobs. Such aid to states is not unprecedented and was a key component of the economic stimulus packages enacted by Congress and approved by the President following the 9/11 attacks."

Here's the complete letter:

Dear Governor Schwarzenegger:

We respectfully request that you urge Congress to make state aid—aimed at boosting the economy of states—the focus of the most recent economic stimulus measure initiated by Congress and now being discussed in Washington. We strongly believe that the measure must empower states like California to protect taxpayers while generating thousands of sorely needed new jobs. Such aid to states is not unprecedented and was a key component of the economic stimulus packages enacted by Congress and approved by the President following the 9/11 attacks.

As you know, along with the rest of the nation, California’s economy has taken a significant dip in recent months. Many Californians are losing their jobs and homes while the costs of basic necessities like gas, food, and healthcare continue to rise. This situation not only places a significant burden on Californians but hits our state’s budget hard at a time when we can least afford it. Without state and federal intervention, many more families will be forced to rely on public assistance, putting increased pressure on a shrinking tax base. These trends pose a serious threat to California’s economic future.

We believe that among the most effective strategies for reversing these trends is a set of state-specific, focused investments aimed at energizing states’ economies and creating jobs. We must link the needs of working Californians with emerging economic potential in clean energy, healthcare, and education.

The congressional economic stimulus measure presents California—and other states—with an important opportunity to bring this economy back. With assistance from our partners in Washington, we can move our economy in the right direction. We respectfully request that you urge Congress to make state aid the focus of the latest developing economic stimulus measure. We will be sending a similar request to the California congressional delegation.

Sincerely,

DON PERATA
Senate President pro Tempore

KAREN BASS
Speaker of the Assembly

DARRELL STEINBERG
Senate President pro Tempore-elect