League would tie road construction to economic jumpstart

The Associated Press

11/13/2008

WASHINGTON — The nation's mayors and governors are prodding Congress to jump-start the economy by increasing food stamp payments, extending unemployment insurance and boosting funding for Medicaid.

The groups say in separate announcements Thursday that the best way to revive the economy is to increase spending at the local level.

Governors are promoting a federal spending plan that could total $126 billion in added dollars for Medicaid, highway construction and job training.

The National League of Cities recommends extending unemployment insurance benefits by seven weeks or an additional 13 weeks in states with high unemployment rates.

Many cities say they're having difficulty borrowing money to pay for day-to-day operations and several states plan special sessions to deal with budget deficits.