Govs Want $1 Trillion Federal Bailout

States want in on federal rescue loans

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    New York State Gov. David Paterson (L) talks to South Carolina Gov. Mark Sanford (R) prior to a hearing before the House Ways and Means Committee on Capitol Hill.

    Gov. David Paterson and four other Democratic governors are asking the federal government for a $1 trillion bailout package -- including $250 billion for education and $150 billion in middle class tax cuts.

      The governors from New York, Wisconsin, Massachusetts, New Jersey, and Ohio say they've presented their plan to President-elect Barack Obama's transition team as well as congressional leaders.
     
    They say that level of federal aid is needed to deal with unprecedented state budget shortfalls in 41 states and Washington, D.C.
     
    Wisconsin Gov. Jim Doyle said congressional leaders and the Obama team have been receptive to the governors' ideas.
     
    In addition to the money for education and tax cuts, the governors said their plan includes $350 billion for road construction and other infrastructure projects and $250 billion for social service programs such as Medicaid.
     
    Paterson says New York faces a $15.4 billion deficit.