Services and stimulus

Gov. Angus King estimates Maine needs $31 million this year to combat terrorism, a modest portion, if figured per capita, of the $40 billion set aside by Congress and the White House for this purpose. New York Gov. George Pataki says his state needs $56 billion from the fund, an amount he will not get even if Washington were to boost the fund that high but a necessary reminder that even fairly modest requests such as Maine’s are likely to run into stiff competition.

Maine and 35 other states are running shortfalls currently as they deal with the effects of a recession and the numerous tax cuts they approved in the last few years. The need to spend on National Guard services and equipment, new Bureau of Health labs and personnel, added airport security measures, etc., means that these costs are not one-time but likely ongoing burdens to state taxpayers. The estimate in Maine is that they will add $20 million a year to the budget after this first year. Some of the new protections may turn out not to be needed later on, but with no one sure which are necessary and which are not, the states sensibly are following the federal rules and guidelines and protecting whatever seems prudent now.

Congress may have trouble appreciating the difficulty states find themselves in now because, unlike the federal government, most states did not start off with a surplus (theoretical or not) and cannot deficit spend to make money appear when a program is worthy. The lack of agreement in Congress on a stimulus package is frustrating for states, which could lose tens of millions in revenue under some versions of the stimulus, but it also provides time for members of Congress to look closer at the new state costs and economic harm they have experienced since the Sept. 11 attacks.

They may well conclude that the two pots of money – terrorism protection and stimulus – are one large pot, and that giving states flexibility in directing funds to the place most needed is an efficient way to pay for services and help the economy.

The federal government doesn’t trust state governments anymore than state governments trust municipalities, but with a standoff on the stimulus package and the demand ever more pressing for revenue to pay anti-terrorism bills, combining the funds may be the swiftest solution to a growing problem.