Executive Committee Home

October 27, 2008

Dear Senator Reid, Senator McConnell, Speaker Pelosi, and Representative Boehner:

The slowing economy is resulting in growing unemployment, increased demand for state services and significant declines in state revenues. As governors work to reduce budget shortfalls and plan for the coming fiscal year, we call on you to pass an economic recovery package this session that includes additional funding for Medicaid and investments in our nation’s infrastructure.

Specifically, Congress should temporarily enhance the Federal Medical Assistance Percentage (FMAP) for at least two years. Funding for FMAP is a particularly effective countercyclical tool because it immediately allows Governors to eliminate planned budget cuts required to meet balanced budget requirements and continue services for those with the greatest need.  

Likewise, investments in ready-to-go infrastructure projects are a cost effective creator of high paying jobs. These investments should include a broad array of infrastructure projects including airports, highways, transit systems, clean water, sewers and broadband. We would welcome the opportunity to work with you on the details of the infrastructure provisions to ensure that funds can be targeted on high priority projects and be obligated and expended quickly by states.

Congress also should consider changes to the federal tax code that can spur economic growth and avoid policies that preempt state authority, shift costs to states or impose new unfunded mandates.

Sincerely,