Looming Cuts Threaten Economic Gains

By: AP Email
By: AP Email

WASHINGTON (AP) - At the annual National Governors Association meeting in Washington this weekend, both Democrat and Republican chief executives are expressing pessimism that the White House and Congress will find a way to avoid the massive, automatic spending cuts set to begin March 1.

They say Washington's recurring budget stalemates hamper their ability to construct state spending plans and spook local businesses from hiring.

Hawaii Gov. Neil Abercrombie says the federal spending cuts set to start kicking in at the end of next week could lead to 19,000 workers being laid off at Pearl Harbor. Abercrombie says that will undermine readiness at the military base. The former congressman says that symbolizes what happens when Congress fails to meet its responsibilities.

Vermont Gov. Peter Shumlin blames Republicans in Congress for playing game that put jobs and the recovery at risk.

But Oklahoma Gov. Mary Fallin's criticism extends more broadly. The Republican says the partisan gridlock between Congress and the president will have "real repercussions" for families and the states.

Iowa Gov. Terry Branstad says he sees no leadership and just politics as usual in Washington.


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