The Charleston Gazette - Byrd, Jay Champion States in Bailout Plan

News Article

In the week of budgetary chaos that erupted on Capitol Hill after the Bush administration unveiled its massive Wall Street bailout package, both West Virginia senators are playing major roles in an effort to make sure the needs of the 50 states do not get lost in the shuffle.
By Kate Long
Staff writer

In the week of budgetary chaos that erupted on Capitol Hill after the Bush administration unveiled its massive Wall Street bailout package, both West Virginia senators are playing major roles in an effort to make sure the needs of the 50 states do not get lost in the shuffle.

Thursday, Sen. Robert C. Byrd, D-W.Va., introduced a $56.2 billion economic stimulus package aimed at the states.

"We must not forget Main Street as we work to address the crisis on Wall Street," Byrd said. "There are consequences for failing to invest in America, and the Bush administration has fiddled while Rome has burned."

Also Thursday, Sen. Jay Rockefeller, D-W.Va., issued a letter signed by 33 other senators - a third of the Senate - that says substantial relief for the states must accompany any Wall Street bailout package.

"The reality of the situation here in Washington is that there are so many moving pieces," said Rockefeller's press secretary, Steven Broderick. "Things are literally changing from hour to hour, and the senator felt it is very important to throw the flag down and say that our states are hurting, and state relief must be part of any economic stimulus package that gets passed."

Byrd's bill and Rockefeller's letter are part of a fast-moving, monumental chess game, with huge stakes, being played out on Capitol Hill, said Michael Bird, chief lobbyist for the National Conference of State Legislatures. "There's a lot going on, on many fronts."

Thirty-two Democrats and two Republicans signed Rockefeller's letter. Neither Sen. John McCain nor Sen. Barack Obama signed it.

Thirty-three states are facing deficits or projecting deficits for the coming year, Rockefeller noted in the letter, "and the number of states facing budget problems is expected to climb in the next six months.

"As a result, these deficits are forcing states to raise taxes and/or cut spending in areas such as health care and education, actions that deepen our economic problems."

Wednesday, the House of Representatives passed the Continuing Resolution that extends the existing federal budget. It did not contain the enhanced Medicaid funding the states had been expecting.

Byrd's bill does contain that funding (a 4 percent across-the-board hike worth $19.6 billion) along with funding for unemployment benefits, food stamps, senior meal programs, and other commodity programs, weatherization, energy independence efforts and infrastructure and public transportation projects.

Capitol Hill office staffers said Thursday afternoon that the Senate and House leadership were negotiating behind closed doors on Wall Street and Main Street issues, but most members of Congress were in the dark about the details.

Late Thursday, the House and Senate leadership said an agreement in principle had been reached on the Wall Street bailout, but they offered no specifics.

Rockefeller noted in his letter that, as the price of gas, utilities and food rises and the economy worsens in general, the number of people who cannot afford health care is rising too, causing Medicaid rolls to swell, pinching state budgets.

"Rockefeller is the leader who understands, perhaps best of all, why Medicaid is so critical for states," NCSL's Bird said. "Time and again, he is the one who has taken the initiative, who has been able to do this in a bipartisan way. He is the one who has tried to fend off the administration, when they objected."

Don Perdue, chairman of the House of Delegates Health and Human Resources Committee, said West Virginia will need the extra dollars as prices of necessities climb faster than wages.

"West Virginians who cannot afford necessary health care will surely climb in the year ahead," he said. "As critically important as Medicaid is to us now, it is going to be even more important in a downturning economy."

Jonathan Coffin, press secretary for Rep. Shelley Moore Capito, R-W.Va., said Capito agrees that the needs of states must be addressed along with any Wall Street bailout.

"She knows that folks want to know that we're addressing concerns of everyday West Virginians here," Coffin said.

However, Capito is concerned, he said, that so many complex issues are being rushed through at breakneck speed.

"All of this is happening in one week. The appropriations process has been whittled down to one bill. All summer, you had chairmen of committees canceling hearings. Now, unfortunately, we're having to work under a deadline on matters that deserve much more consideration."

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