Iowa’s Democratic Governor Chet Culver told congressional leaders that the economic meltdown has drained $54 billion from the coffers of state governments, sending at least 29 states into a deficit this year.

Culver was in Washington to deliver a message from the nation’s governors to House Speaker Nancy Pelosi and others.

Just since summer, an additional 15 states have seen a gap appear in the budget for the current fiscal year, Culver said.

 

In Iowa, the economic slowdown has had a pronounced affect. Last year, state tax collections grew by 8%, and budget experts have predicted a growth this year of just 1.2%, a difference of $400 million.

“We’ve got to manage the budget, we’re going to be disciplined, we’re going to take the necessary steps to keep our fiscal house in order,” Culver said.

Culver urged congressional leaders to approve new spending for infrastructure programs, which can create jobs quickly by rebuilding roads and other projects.

In addition, Culver said, the states may need direct financial assistance to help pay for programs like food stamps, Medicaid, and unemployment compensation that are funded jointly by the state and federal government.

Iowa’s problems are less severe than some states, such as California, where officials have warned they need $7 billion in assistance just to keep state government running.

 

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