Governors: Looming cuts threaten economic gains

WASHINGTON (AP) - Governors are becoming prominent voices in the fight to cut the federal deficit, warning that Capitol Hill's latest budget stalemate is causing fresh uncertainty that threatens economic progress.
State leaders attending the annual meeting of the National Governors Association joined ranks Friday to condemn the massive automatic spending cuts that are set to begin March 1.
The Obama administration said failure to avert the cuts could lead to widespread flight delays, shuttered airports, off-limit seashores and the furloughing of hundreds of thousands employees.
"It is not helpful when Congress and the president and the administration have such partisan gridlock," said Oklahoma Gov. Mary Fallin, a Republican and former member of Congress. "Because their gridlock has real repercussions on the families ... it has real repercussions on our states and our economies."
Vermont Gov. Peter Shumlin, chairman of the Democratic Governors Association, said the nation "cannot afford to put at risk jobs and the recovery."
"The only thing that's standing in the way of prosperity right now is the games being played by the Republicans in Congress," he said following a meeting between Democratic governors and President Barack Obama.
At their weekend meetings, governors planned to focus on jobs and the economy, gun control and the new health care law.
Some Republican governors have blocked the use of Medicaid to expand health insurance coverage for millions of the uninsured. Others have joined Democrats in a wholesale expansion as the law allows. For many governors, there's a pervasive sense of frustration with Washington.
"My feeling is I can't help what's going on in Washington," Gov. Terry Branstad, R-Iowa, said in an interview Saturday. "I can't help the fact that there's no leadership here and it's all politics as usual and gridlock. But I can do something about the way we do things in the state of Iowa."
No issue carries the same level of urgency as the budget impasse.
Congressional leaders have indicated a willingness to let the cuts take effect and stay in place for weeks, if not much longer.
The cuts would trim $85 billion in domestic and defense spending, leading to furloughs for hundreds of thousands of workers at the Transportation Department, Defense Department and elsewhere.
Defense Secretary Leon Panetta has said the cuts would harm the readiness of U.S. fighting forces.
Obama has stepped up efforts to tell the public about the negative impact, and tried to pressure Republicans who oppose his approach of targeted savings and tax increases to tackle deficits.
Republicans responded sharply to the president's fresh demand to include higher taxes as part of a compromise.
"Spending is the problem, spending must be the focus," said House Speaker John Boehner, R-Ohio.
Senate GOP leader Mitch McConnell of Kentucky said "there won't be any easy off-ramps on this one. The days of 11th hour negotiations are over."
But governors aren't yet resigned to the worst-case scenario.
"I think there should be limited government, but I don't like random changes. If you look at my budget, I didn't do across the board cuts," said Wisconsin Gov. Scott Walker, a Republican. "I think you should be more strategic."
The looming cuts were never supposed to happen. They were intended to be a fallback in case a special deficit reduction committee failed to come up with $1 trillion or more in savings from benefit programs.
While Washington Republicans blame the White House for creating the plan, they joined Democrats in voting it into law.
There was little Obama-bashing from Republican governors on Friday. But there was plenty of frustration.
State leaders attending the annual meeting of the National Governors Association joined ranks Friday to condemn the massive automatic spending cuts that are set to begin March 1.
The Obama administration said failure to avert the cuts could lead to widespread flight delays, shuttered airports, off-limit seashores and the furloughing of hundreds of thousands employees.
"It is not helpful when Congress and the president and the administration have such partisan gridlock," said Oklahoma Gov. Mary Fallin, a Republican and former member of Congress. "Because their gridlock has real repercussions on the families ... it has real repercussions on our states and our economies."
Vermont Gov. Peter Shumlin, chairman of the Democratic Governors Association, said the nation "cannot afford to put at risk jobs and the recovery."
"The only thing that's standing in the way of prosperity right now is the games being played by the Republicans in Congress," he said following a meeting between Democratic governors and President Barack Obama.
At their weekend meetings, governors planned to focus on jobs and the economy, gun control and the new health care law.
Some Republican governors have blocked the use of Medicaid to expand health insurance coverage for millions of the uninsured. Others have joined Democrats in a wholesale expansion as the law allows. For many governors, there's a pervasive sense of frustration with Washington.
"My feeling is I can't help what's going on in Washington," Gov. Terry Branstad, R-Iowa, said in an interview Saturday. "I can't help the fact that there's no leadership here and it's all politics as usual and gridlock. But I can do something about the way we do things in the state of Iowa."
No issue carries the same level of urgency as the budget impasse.
Congressional leaders have indicated a willingness to let the cuts take effect and stay in place for weeks, if not much longer.
The cuts would trim $85 billion in domestic and defense spending, leading to furloughs for hundreds of thousands of workers at the Transportation Department, Defense Department and elsewhere.
Defense Secretary Leon Panetta has said the cuts would harm the readiness of U.S. fighting forces.
Obama has stepped up efforts to tell the public about the negative impact, and tried to pressure Republicans who oppose his approach of targeted savings and tax increases to tackle deficits.
Republicans responded sharply to the president's fresh demand to include higher taxes as part of a compromise.
"Spending is the problem, spending must be the focus," said House Speaker John Boehner, R-Ohio.
Senate GOP leader Mitch McConnell of Kentucky said "there won't be any easy off-ramps on this one. The days of 11th hour negotiations are over."
But governors aren't yet resigned to the worst-case scenario.
"I think there should be limited government, but I don't like random changes. If you look at my budget, I didn't do across the board cuts," said Wisconsin Gov. Scott Walker, a Republican. "I think you should be more strategic."
The looming cuts were never supposed to happen. They were intended to be a fallback in case a special deficit reduction committee failed to come up with $1 trillion or more in savings from benefit programs.
While Washington Republicans blame the White House for creating the plan, they joined Democrats in voting it into law.
There was little Obama-bashing from Republican governors on Friday. But there was plenty of frustration.
Is it just me, or is Gov. Mary Fallin giving instructions on how best to handle her?
There is no easy way out of this mess. It IS going to hurt. The administration must stop coddling those sucking at its teat. Let the cuts begin so the healing can begin. Everyone will feel the pain...suck it up!
It's a disease. Â It doesn't seem to matter who we elect to office. Â It's just a matter of time before they become one of the good old boys, and cater to special interests instead of the citizens. Â Generally speaking, Americans don't have any guts. Â They are so afraid they may lose a little that they will end up losing a lot. Â This current bunch of Americans would have surrendered to the British and we would still be British subjects. Â For every one of us that will stand up for our rights, there are dozens who won't. Â Now that obama and his buddies have got all of the deadbeats on their side, I doubt if we will ever get our country back. Â At least not at the voter's booth.
It's funny, really. It seems that on both sides of the discussion, the patent statements are;
1) It's the other party who's unwilling to negotiate, we're on the 'average Americans' side.Â
2) We have the only viable solution, and it's supported by the majority of Americans.Â
Well, children, here's the reality. Both parties are only interested in 'tackling' the spending problems within our federal government so long as the solutions do not adversely affect groups who (demographically speaking) support 'their party'. We are not going to cut our way back to fiscal sanity any more than we are going to tax our way to it. The impasse comes from either sides stalwart presumption that we can do one without the other and come out of this problem.Â
Unfortunately, our federal government has become more about special interests and ideological absolutes than a group of elected representatives working together towards effective compromise.Â
F- it. I say let the sequester happen. To me, as well as the majority of other 'average Americans' I know, it will have little effect. Thus far, this 'recovery' has been a joke. My life is not improved the slightest insofar as cost of living vs income since the 'economic slowdown' started back in '08. I fail to see how this could possibly make it any worse.Â
Can't we just go and Raid the white house , senate and lobbies and toss them out on there buts and take people that know a little something and replace them?
@lee986321Â ~ Â There's a thought... like a good ol'-fashioned "house-cleaning"..! Â Â I'm game..! Â :-)
The Dems AND the Repubs have BOTH been scr*wing the American tax-payers for decades now; each one in their turn as they swapped positions in power... Â Both of these political "gangs" are self-serving, bought-and-paid-for by their special interests, and NEITHER of them gives a damn about us... all that matters is lining their own pockets with our money and acquiring more power so they can get even MORE of our money... Â Â
Until we-the-voters find the courage and determination to replace BOTH of these too-long-entrenched parties, we will continue on the same suicide course that we're on now...even now, it may be too late.
"The Dems AND the Repubs have BOTH been scr*wing the American tax-payers", ya cause that party just before the village idiot took office had a running surplus
@sargerator
 """"""ya cause that party just before the village idiot took office had a running surplus""""""
With your logic of blaming W Â for B HO's failures, seems only appropriate that we then should blame Clinton for Bushes deficits
OK, so you want to get back to the CONSTITUTION and our FOUNDING fathers ?? I think thats been one of your rants .... hamilton set a tax system that , for the most part , taxed ONLY capitol gains and tariffs....so how the F did those "job creators" survive back then.....or how about the 91% tax rate on any income above 200K in 1945 & 1946...oh, or how about the tax rate of 70% on 2 mill just back in 1980.....how did we even exist back then ??
That crap about "paying unfair amount" by the wealthy is just crap ! Look at other nations where the uber wealthy pays LITTLE tax , go ahead tell me which ones are like the US has been since the 40's with a middle class like ours....go ahead tell me where else that exists ! It doesn't BECAUSE of our tax system that tries to stop an ELITE royalty class that , if allowed, crushes a middle class !!
@sargerator  Sarg, you really need to lighten up on the sause.....
It doesn't matter how many times you repeat it your tax  stats.... theyÂ
are just partisan fantasies Â
""""""""we have a smaller tax base partly because we can't tax , and get this lie, the job creators. """"""
The top 1% of wage earners in this country pay 37% of all personal income taxes paid...... thats even more than  European socialistic  govt. where the wealthy only pay around 30%..... So any way you cut it, the wealthy in this country are ALREADY  paying their unfair share ... it is A FACT YOU CANNOT  DENY.Â
See , you show your complete inability to comprehend ....BJ's was running a SURPLUS...the village idiot inherited a SURPLUS....GET IT. Then the village idiot ran up a huge debt with the 2 largest tax breaks that gave the wealthiest among us a 50% tax cut. Did you get a 50% tax cut...NO ! Then the village idiot took us into 2 unfunded wars that his thugs continued to go on tv and say it would be all payed for by iraq oil, ANOTHER LIE. Then the village idiot tied the hands of the sec and fbi so they couldn't investigate the crooked financial thugs and bamm we get a housing bubble that crippled our economy. So now not only do we have huge defecit ALONG with larger interest payments, we have a smaller tax base partly because we can't tax , and get this lie, the job creators. Yes YOUR party caused this, DEAL with it poop !
How many here think kramr has a grip on reality..
From the village idiots own mouth we went from 2 trillion debt to 10.4 trillion PLUS the 2 off budget war bills total of 1.6 trillion ALONG with his tax cuts of 50% on the "pool side dividend" millionaires like paris hilton (how many of you goofball supporters got a 50% tax cut ?...ya we're in a mess and whos gonna pay ? Looks like the republiCON congress is gonna make the middle class and poor pay for it because...."how can we tax the job creators" or in reality, "how can we tax paris hilton and that ilk" !
http://www.youtube.com/watch?v=h5F79kd2O7U
@sargerator Oh and when did bush put the 2 (two) wars on the budget??
Oh.... Right....
 AFTER he left office....
EACTLY ! these republiCON cheerleaders are in complete denial !
@sargerator Yea yo need to lighten up on the truth.
If the republicans can destroy the economy and blame Obama.
Don't you think they will even if it means destroying America??
I mean if they can fake a war and have 3,500 American Soldiers killed for oil.
What do you think the rest of us Americans mean to them??Â
@sargerator  Sarg..... you need to lighten up on the sauce
W clearly spent more than he should have, but he only added  four trillion and change to the debt where as  Bronco Bamma added more to the national debt  in ONE TERM than W did in two.
Ya know Sarg, Â I know you are one not to let facts get is the way of a good rant.....
you are always entitled to your own opinion,, Â just not your own facts Â
from a very LIBERAL website..... W added 4 trillion to the national debt.
http://www.cbsnews.com/8301-500803_162-4486228-500803.html
from  a very liberal website........  obama adds MORE  to debt than Bush
http://www.cbsnews.com/8301-503544_162-57400369-503544/national-debt-has-increased-more-under-obama-than-under-bush/
So your "darling" village idiot added approximately 4.3 trillion in his 8 years WHEN he had been running a surplus of revenue vs. costs AND reversed that with 2 of the LARGEST tax cuts, mostly on the top 2 % of income AND carried out 2 OFF BUDGET unpaid for wars.
While obama had a 4.1 trillion dollar deficet increase in his 1st four years AND that included bring INTO budget the 1.4 trillion dollars costs of the village idiots off budget wars....so in effect minus the idiots bills obama had an increase of 2.7 trillion AND that includes an even higher interest payment on the defecit that the village idiot COULD have payed off with BJ's running surplus. When are the lies gonna stop kramr ??
 http://home.adelphi.edu/sbloch/deficits.html
Large automatic spending cuts across the board are exactly what is called for.
I don't understand why people are worried about the sequester. Â Make it happen. Â Cut more. Â Every single agency. We have no choice.
This is ideal. Â Please make it happen. Long term it is the only thing that will save the poor and middle class. Â Otherwise we will be destroyed by inflation. Â It is inevitable if we don't stop spending.
Higher taxes, less spending, bigger deficits, print more money, no matter what they do it will hurt the economy. Politicians have over spent and over promised for decades and now we have to deal with it.
Hopefully they do nothing and let the cuts go forward. We need to cut the deficit just like the EU is cutting their deficits.
@RalphCramden yes, and at the same time the EU is tanking their economy because of those cuts. But then again it doesn't surprise me that you say this since from your comment you don't seem to care about the economy of the country and instead only care about your own self interest. You definitely have that Repubican life plan down pat.
@RamsesthegreatÂ
I am out for myself. No denial there. Government doesn't care about me. Government is all about the rich, for the rich, by the rich. I am not rich so I have to look out for myself.
To help facilitate that I grab all the government services, tax breaks and tax credits I can. It actually saves me a lot of money and I feel a lot better getting back all that money that I am forced to give to them.
I encourage everyone to use as many government services as I can and this week I got about 40 folks tax credits that amount to about $10,000 of free government money. I have to feel good about that.
The Republicans know this will cripple the economy. They're counting on it. The only people it will hurt are the poor and middle class whom the GOP couldn't care less about. They'd rather, poorly, attempt to blame the president for their complete unwillingness to budge on anything than do what is right and good for the economy of this country.