Budget crisis update: Congress OKs aid bill
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The U.S. House, recalled to the Capitol from the campaign trail for a special sitting Tuesday, approved and sent to President Obama a $26 billion budget bailout for the states. For Washington, it will mean the difference between having a small reserve and dipping into the red, requiring a special session or gubernatorial edict to cut state spending.
The vote was party line in the Washington delegation: 6 Democrats aye and 3 Republicans nay. A relieved Governor Gregoire was delighted with the budget reprieve, although the state still faces an estimated $3 billion budget problem in the upcoming biennium.
The measure includes $338 million for Medicaid services in Washington, an amount already presumed in the budget adopted last spring, based on assurances from the White House and congressional leaders that it was coming. Still, when a public backlash to federal spending and deficits developed in recent weeks, the fate of the bailout plan was in doubt.
The aid package also includes an estimated $205 million for K-12 education.
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Secretary of State
Steve Hobbs
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