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NGA: Debt limit fight could hurt state budgets, economies

January 9, 2013

Federal uncertainty about the debt limit and spending cuts could hurt state economies and budgets, National Governors Association Chair Delaware Gov. Jack Markell said today. Speaking at the association's first "State of the States" address, Markell and NGA Vice Chair Oklahoma Gov. Mary Fallin highlighted four points governors have urged the president and Congress to consider when addressing deficit reduction and sequestration. NGA says reforms should produce savings for the federal government and states; not shift costs to states; give states more flexibility to increase efficiencies; and not impose maintenance of effort provisions on states as a condition of funding. Fallin also spoke about an NGA initiative to tackle prescription drug abuse and unveiled a new NGA website featuring best practices from states working to improve health care access, affordability and quality.