Obama vows to help Kansas and other struggling states

In a meeting with the nation’s governors, President-elect Barack Obama on Tuesday vowed to enact a recovery plan to help states like Kansas that are struggling with budget deficits because of the souring economy.

“We intend to put tax cuts into the pockets of hard-pressed middle class families in your states. And we intend … to start making a down payment on the critical investments that are going to be necessary to sustain long-term economic growth as well as pull us out of the current slump,” Obama said as he sat down with governors in historic Congress Hall in Philadelphia.

Gov. Kathleen Sebelius, a Democrat who campaigned hard for Obama, presented the National Governors Association’s request for $40 billion to help with health care for the poor and disabled.

“President-Elect Obama made it clear that he wanted input and ideas from governors about the focus and size of the stimulus package which he plans to propose to help get the economy back on track,” Sebelius said in a statement after the meeting.

She said Obama asked for recommendations and reform ideas during a dialogue that lasted nearly two hours.

“I am optimistic that our ideas will help to frame the president-elect’s proposals and will be very helpful to Kansas as we cope with continuing to deliver essential services in a declining economy,” Sebelius said.

Because of the recession, Kansas is facing a $147 million budget shortfall that is expected to grow to $1 billion next year.

Numerous cuts, including those in social services, education and highways, have already been announced. Sebelius said that the worsening economy will drive up social service costs.

The bipartisan group of governors also proposed upwards of $136 billion in road projects and other infrastructure needs.

Democratic leaders in Congress say they hope to have the economic stimulus measure ready for Obama’s signature as soon as he takes office Jan. 20.

It’s expected to include funding for infrastructure projects and Medicaid to the states with tax cuts, a temporary increase in food stamp payments, as well as investments in renewable energy projects and other “green jobs” initiatives.