At Governors' Conference, It's the Economy Stupid

By: Fernando Suarez
Topics: Economy ,; State Politics

Vermont Gov. Jim Douglas, shown here in his ceremonial office in Montpelier, Vt., on Aug. 27, 2009, noted today at the opening of the National Governors Association Summer meeting that governors have had to make tough economic choices.

(Credit: AP Photo/Toby Talbot)

BOSTON -- At a press conference on the opening day of the National Governors Association Summer meeting in Boston, governors from different parties had one clear message: their states are being plagued by budget deficits and tough economic times.

"As we come out of the great recession, states have had to make some very difficult budget choices," said the outgoing NGA president, Vermont's Republican Gov. Jim Douglas. "In some cases they've chosen to increase taxes, they depleted reserves, they've borrowed more, they've done what is necessary to get through this difficult time."

In a clear jab at the way Washington has handled the economic downturn Douglas said, "Unlike the federal government, we can't print money, we have to balance our budgets."

The focus of the conference is expected to be on health care, but it is clear the underlying concern is how these governors can work together to grow their local economies.

"We all recognize that we are not going to be able to tax our way to a prosperous future," said Democratic Gov. Jack Markell of Delaware. "We're not going to be able to cut our way to a prosperous future. In the end, that means that we need to grow our way.

Hosting Massachusetts Gov. Deval Patrick, a Democrat, joked at the beginning of the press conference that he was excited the conference was being held in his state.

"We are especially pleased to have so many people here to pump some welcome dollars in our local economy," he said.

Patrick said the city expects to gain as much as $3 million over the course of the conference, adding, "We're challenging our guests to beat that projection."

Fernando Suarez is a digital journalist for CBS News. Read more of his Hotsheet posts here.

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by archlinecad July 11, 2010 6:02 AM EDT: What recovery? It's not amusing. This IS a depression, and it's bigger than government. It is an international perfect storm. Tighten your belts. We ain't seen nothing yet. The disparity between US rates of compensation and those of developing nations' rates with whom we are increasingly trading is a ratio of more than ten to one. There is an exploding international middle class, demanding goods and services, which heretofore had been reserved primarily for the relatively few industrialized nations, especially including the US. Now, just in China the middle class in that country is larger than the entire US population...and it's growing. There simply is not enough international goods and services to go around. For example, there is only about half the uranium in the world to service the nuclear plants currently under construction.

Sooner or later people and governments are going to get upset with one another. Someone will start shooting. WWIII could be the result. The last world war ended with the detonation of a couple of nuclear devices. The next one will probably START with one.; Reply to this comment


by nuttyworld July 9, 2010 9:46 PM EDT: Big businesses didn't allow jobs to go oversees. Unions demanded it by their unreasonable wage demands. Unions did it to themselves.; Reply to this comment


by nuttyworld July 9, 2010 9:42 PM EDT: Lost manufacturing jobs oversees due to union greed. Think about it, businesses couldn't afford to pay U.S. employee the union wages they demanded. Unions are dutting their own throats.; Reply to this comment


by JJSully2011 July 9, 2010 3:41 PM EDT: Vote Republican't - What? The stallwarts of big business that allowed all the manufacturing jobs that you are complaining about going overseas to happen? You say they looked out for the little guy - when, in what world?

We are in a WORLD economy and if we don't get a clue about how to compete in this economy this won't be the worst we see in our lifetime.

I also not a fan of the dems, they want to help the little guy but through entitlements and give-aways. And until we get away from the entitlement mentality our states and our economy will continue to struggle under the burden.

Where is the CAN DO American spirit? Where are the poeple that will make tough choices, where are the forward looking people? It's not our politicians, all they care about is getting reelected and getting their cronies hired. Fire them ALL, dems and repubs, they are all just out for themselves and don't give a s**t about you or me!; Reply to this comment


by tsigili July 9, 2010 2:12 PM EDT: I continue to be amused by the government's refusal to call this a "depression", because they fear the word.; Reply to this comment