"Debt ceiling fix could mean problems for states"

Debt ceiling fix could mean problems for states

By DINESH RAMDE, Associated Press


<snip>
That could mean wide-ranging cuts in federal aid to states, affecting everything from the Head Start school readiness program, Meals on Wheels and worker training initiatives to funding for transit agencies and education grants that serve disabled children.

There also was concern among governors, state lawmakers and state agency heads that Congress would make deep reductions or changes in federal aid for health services for the needy, most notably through Medicaid. That could shift more of the costs onto states that already are having trouble balancing their budgets.

"We have the potential for disaster should there be a major realignment in federal funding that results in a cost shift to states," said Nevada state Sen. Sheila Leslie, a Democrat from Reno who recently discussed the issue with Obama administration officials in Washington. "In short, we are teetering on the edge right now, and a cost shift could send us over the cliff."

States already have closed nearly $480 billion in budget gaps since the beginning of the recession, according to the National Conference of State Legislatures. <snip>

http://www.google.com/hostednews/ap/article/ALeqM5iPn5L0XBY7u6ULPzwDzFWFI26cPg?docId=6f626e46a1884384a666aa23598ee200

now we'll have fed gov't cuts on top of that, further exacerbating state and local budget crises.....

...is in the deal precisely because it will never be passed by the states. It's a gesture. 38 state legislatures aren't going to vote to make their own economic situations worse, just to provide a bunch of legislators in Washington who refuse to do their job political cover.

No one listened to the "crazy NE socialist".

Do you all know how much I want this to blow up in their faces/districts?

There are no words to describe how I hope this budget decision hits their districts.