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January 8th, 2008

SACRAMENTO – Assembly Speaker Karen Bass' statement regarding President-elect Barack Obama proposed federal economic stimulus plan:

“President-elect Obama is offering the country a build-up, not a bail-out. That’s exactly the right message at exactly the right time.  In my conversations with the Obama transition team we have discussed realistic ways the federal government can help California lead a national recovery.  The infrastructure investments the President-elect outlined today – particularly in transportation and green technologies – are a good match for California.  I am also pleased to see the emphasis on extending Unemployment Insurance and health care for workers who have lost their jobs in this crisis.  That is important economic stimulus as well.

“In looking at additional ways the federal government can work with California, such as increasing our too-low Medicaid share and reimbursing us for the costs of incarcerating

Obama
Speaker Bass with Press
 
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undocumented prisoners, state legislators and our congressional delegation stand united in working to ensure California does not continue to be shortchanged by unfair formulas that leave us getting only 79 cents back from every dollar we send to Washington.

“President-elect Obama also rightfully acknowledged the need to help struggling states avoid even more harmful budget cuts than we are already having to make.  In exchange the President-elect has called on states to take responsible steps.  If a bipartisan 2/3 solution can not be achieved in the appropriate time, I continue to believe those steps must include implementing the $18 billion in budget solutions legislative Democrats put forward to avoid our immediate cash crisis, solve almost half the budget deficit and create 367,000 new jobs.  

“There will, of course, be tough decisions ahead, but I am hopeful we will be able to come to an agreement that is in the best interests of the people of our state.  I am also hopeful as negotiations move forward that in the light of what is being offered at the federal level, California not take a penny-wise / pound-foolish approach where minor cuts in state programs result in a major loss of federal funds.

“Given the severity of this crisis and the indications that it may get even worse before it gets any better, I applaud President-elect Obama for his thoughtful leadership in sharing with America the bold policies he outlined today.  As the nation’s economic engine – with 18.5 million workers producing more than $1.5 trillion annually – California’s recovery has to be an important consideration for the incoming administration.  I look forward to continuing to work with the Obama Administration and our partners in Congress to help ensure the swiftest possible economic recovery for our state and our nation.”

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