Obama: Governors key to economic plan

by Christi Parsons

PHILADELPHIA--The nation's governors came to tell their tales of economic woe, and president-elect Barack Obama was ready with an offer to ask them to help draft the national economic recovery plan.

After convening almost a complete set of the state executives today, Obama pledged "action, and action now" to address the budget shortfalls expected in no less than 41 states this year or next.

"As president, I will not simply ask our nation's governors to help implement our economic recovery plan," Obama told an assembly of 48 governors gathered in historic Congress Hall. "I will ask you to help design that plan. Because, if we're listening to our governors, we'll not only be doing what's right for our states, we'll be doing what's right for our country."

The pledge is easier said than accomplished. Twenty states have cut $7.6 billion from their fiscal year 2009 budgets, the National Governors Association reports. Thirty states say they are expecting additional shortfalls of more than $30 billion.

But after recent years of tenuous relationships with the Bush administration, several governors -- mostly Democrats, as is Obama -- say they are hopeful the incoming president will take their counsel as he crafts his economic recovery plan.

They, in turn, promised to help Obama promote his proposal to the American people.

"This is an unprecedented opportunity you're affording the nation's governors to have input on something that we believe is crucial to beginning the process of turning this country's economy around," Pennsylvania Gov. Ed Rendell told Obama.

The meeting came as Obama continued to send warm signals to state and local government officials. Earlier this week, as he unveiled his nominee to head the Department of Homeland Security, Obama spoke of Arizona Gov. Janet Napolitano as someone who knows "firsthand the need to have a partner in Washington that works well with state and local governments."

Obama is also expected to name another governor, New Mexico's Bill Richardson, to serve as his Commerce secretary, possibly as early as Wednesday.

Several weeks ago, Obama signaled a key role for the country's governors in crafting his economic stimulus plan. The president-elect followed up shortly after that with a request for a meeting with the governors, which Rendell arranged.

Most of the meeting took place in private, with the governors leaving most of their aides outside. But according to sources who were present, there was a general agreement among Democratic and Republican governors about the need for investments in infrastructure.

On that point, the Obama team was in agreement.

"We need to rebuild America, we need to build those critical areas today . . . and an Economic Recovery Act has to do that," said Rahm Emanuel, who will serve as Obama's chief of staff and who was present for the meeting. "You have Democratic and Republican governors who see that as essential to own economic recovery in their states, and we see it as essential to the economic recovery for the country."