Communications

January 11, 2009

“States do not want the ‘help’”

States are asking the Obama Administration to put a hold on implementing new EPA emission rules over concerns that more regulation would only add to their ever-widening budget deficits as well as result in more job loss. The EPA is moving to regulate emissions as it has become clear that the White House’s job-killing initiative called cap and trade is unlikely to be taken up during an election year.

State budget deficits are in the billions this fiscal year and are projected to widen further in the coming year as federal stimulus dollars run out and revenues continue to drop. Democrats claim they are looking for ways to bolster the states until the economy fully recovers. However, instead of promoting policies that lessen regulation, cut taxes and encourage growth, the White House continues to push job-killing policies and unfunded mandates such as the EPA’s new regulations and a health care bill, whose added costs the nation’s governors are protesting as well.

The pushback from the states is not lost on the White House. As Politico reported last week the Obama Administration has been working to corral support from Democratic governors on health care in particular. One can imagine there will be many more of these pep talks with Democratic governors in the near future if the administration continues to push increased costs onto the states and promote job-killing initiatives.