Chairman Towns, Ranking Member Issa, members of the committee, on behalf of the nation’s governors, thank you for holding a hearing to review and discuss state efforts to implement the American Recovery and Reinvestment Act (ARRA).
Background
The economic conditions governors face in their states are unprecedented. Earlier this year NGA estimated that state budget shortfalls for fiscal years 2009, 2010 and 2011 would be between $200 and $250 billion as a result of falling revenues from the faltering economy. These shortfalls mean that governors must cut services and develop new sources of revenues to meet state balanced budget requirements — actions that could slow an economic turnaround.
