10/21/2008 GAAS:734:08 FOR IMMEDIATE RELEASE Print Version |
Governor Schwarzenegger Sends Letter to Congressional Leadership Supporting a Second Economic Stimulus Package
Governor Arnold Schwarzenegger today sent
the following letter to Congressional leadership supporting a second economic
stimulus package.
Text of the letter:
October 21, 2008
The Honorable Harry Reid
Majority Leader
United
States Senate
Washington, DC 20510
The Honorable Mitch McConnell
Minority Leader
United
States Senate
Washington, DC 20510
The Honorable Nancy Pelosi
Speaker of the House
U.
S. House of
Representatives
Washington, DC 20515
The Honorable John A.
Boehner
Minority Leader
U.
S. House of
Representatives
Washington, DC 20515
Dear Senator Reid, Senator McConnell, Madam Speaker and
Mr. Boehner,
I appreciate your efforts over the past year to work
together to help stimulate our struggling economy and bolster our financial
system. Action to foster economic stability is an essential first step, but it
is clear that additional federal supports are required to help jump start our
economic recovery and lay the foundation for long-term
growth.
I am encouraged to hear that both President Bush and
Federal Reserve Chairman Bernanke have indicated their support for a second
economic stimulus package, reinforcing your efforts in this area. I am in firm
agreement that a second economic stimulus package is necessary and that Congress
should move as quickly as possible to enact this legislation. It cannot wait
until next year. As we all know, the timing of an economic stimulus package is
just as important as its components.
A second economic stimulus package must include
countercyclical aid to states through a temporary increase in the federal
Medicaid matching rate and/or by providing direct grants to states. I also
strongly support another extension of unemployment insurance benefits for those
who have exhausted their regular allotment and continue to remain unemployed in
this difficult economic period. The Congressional Research Service, the
Congressional Budget Office and most economists agree this type of targeted and
temporary federal spending can provide the most "bang for the buck" in
stimulating the economy because the money can be injected almost immediately and
has a strong economic multiplier effect.
An increase in infrastructure spending can also provide
near-term economic benefits when the appropriate projects are chosen. This will
also have a significant economic multiplier effect that will create desperately
needed jobs. I strongly recommend that Congress include additional funding for
"ready to go" infrastructure projects in any economic stimulus
package.
I am not alone in this request. Last month, 29
governors joined me in signing a letter to the congressional leadership calling
for a second stimulus package that includes aid to states and additional funding
for "ready to go" infrastructure projects. Many governors also supported my
call for another extension of unemployment benefits, especially for states
experiencing higher than average rates of unemployment. I look forward to
working with you and the entire California Congressional Delegation to ensure we
do everything we can to stabilize the economy and build a solid foundation for
long-term economic growth.
Sincerely,
Arnold Schwarzenegger
cc: Members of the California Congressional Delegation
