News - Local News

POSTED: Wednesday, Dec. 03, 2008

Gregoire seeks more than $1 billion in fed money

WASHINGTON, D.C. - Washington state officials have identified a minimum of $600 million in infrastructure projects they would like funded by a federal economic stimulus package early next year, Gov. Chris Gregoire said Tuesday, Dec. 2, after she and other governors met with President-elect Barack Obama.

The state may also need nearly $1 billion in federal money for its Medicaid program if it is to avoid cuts in medical care for the poor and disabled or in other state programs, Gregoire told reporters in Washington, D.C., where Democratic governors were gathering as a follow-up to the meeting with Obama in Philadelphia.

"I don't think any of this is a handout," the governor said. "If we don't do something, it (the economy) will only get worse."

Gregoire said she has made clear to the Obama transition team that she is not interested in a job in the new administration.

But in conversations with Rahm Emanuel, who Obama has named his White House chief of staff, and John Podesta, who is helping run the Obama transition team, Gregoire said she has lobbied for several other Washingtonians.

The governor wouldn't name names, but among those mentioned are Rep. Adam Smith, D-Wash., for a high-ranking post in the State Department, perhaps undersecretary; former Gov. Gary Locke as U.S. trade representative and Rep. Jay Inslee, D-Wash., for secretary of interior.

Washington state faces an estimated $5.1 billion deficit for the coming 2009-2011 biennium and the governor has ordered cuts in programs, imposed a hiring freeze and instituted a four-day work week for some state employees to keep the budget in the black during the current biennium.

The governor said in order to balance the state's next budget, as required by law, she may have to cut discretionary spending by 40 percent.

Washington state is not alone, as 41 states face a combined deficit of more than $120 billion in the next two years. "All of us are facing Draconian cuts," Gregoire said.

Congress is expected to consider an economic stimulus plan that could total more than $500 billion. The governors are seeking $136 billion for infrastructure projects and $40 billion for Medicaid. Lawmakers hope to have such a plan on Obama's desk when he takes office Jan. 20.

The top priority is getting people back to work by investing in infrastructure projects, and not just roads and highways but schools, sewage treatment plants and water systems, she said.

"I have identified a minimum of $600 million that could be ready to go in 90 to 100 days," she said, though declining to name specific projects. "I don't have a comprehensive list."

As for Medicaid, Gregoire said, "I would like something short of $1 billion."

Without the money, Gregoire said such programs as in-home health care for the elderly, Meals on Wheels and reimbursement rates for hospitals and other health-care providers could be cut.

In addition, without the extra Medicaid funding other state programs including K-12 and higher education could face cuts.