AUGUSTA – The nation’s governors are pushing for a second economic stimulus package aimed at helping the states weather the ailing economy, and members of Maine’s congressional delegation say work is under way.

“I have not seen any details of the governor’s plan, but in concept I support a package to help the states,” said Democratic 1st District Rep. Tom Allen. “The states are really in a bind. The economy is expected to turn down the rest of this year, particularly in the third and fourth quarter.”

Allen said Friday the states are facing serious economic problems as demand for services increases during an economic downturn and state revenues decrease. He said Congress should listen to the governors and craft an aid package.

Gov. John Baldacci said Friday that the National Governors Association package seeks $12 billion from Congress for two grant programs, with $6 billion targeted to help the states pay for Medicaid and an additional $6 billion for a block grant program that could be used for projects ranging from roads and bridges to water and sewer facilities.

“These are projects that are ready to come off the drawing boards today,” Baldacci said. “These projects will help the economy by generating additional construction jobs.”

Baldacci said the package is similar to one approved by Congress in 2003 that provided $20 billion to the states to assist the recovery from the 2001 recession.

“I think a targeted program that helps the states and helps the municipalities get projects moving will create jobs and get the economy moving,” he said.

Sen. Susan Collins, R-Maine, wrote the 2003 provision in the economic growth package that pumped $115 million into the state over a two-year period. Funds were used for Medicaid, health care services, education programs, job training and homeland security costs.

“The economic stimulus package recently signed into law should help our economy in the short term,” Collins said last week. “We must now focus our attention on strengthening our economy in the long term by carefully evaluating proposals for economic growth and recovery that were not included in the first economic stimulus package.”

She said with energy costs driving much of the nation’s economic problems, the package should also include tax incentives for individuals and businesses to invest in conservation efforts as well as alternative energy.

Rep. Mike Michaud, D-Maine, who represents the 2nd District, said Friday he discussed the NGA proposal with several governors earlier this month. He said a second stimulus package is warranted and should be acted on swiftly to ease any recession that may occur.

“I have always been a strong supporter of building our infrastructure,” he said. “If you look at Maine, we have a lot of projects that are ready to go, all they need is the money.”

Michaud said public works projects have always been an important part of government economic stimulus efforts. He said whether it is construction of roads and bridges or public buildings, the money spent on the projects helps stimulate economic growth.

“We should also look at extending unemployment benefits,” he said.

Sen. Olympia Snowe, R-Maine, agreed and is pushing for inclusion of both extended unemployment benefits and additional funding for the LIHEAP program in any additional stimulus package.

“If we are to successfully reverse the conditions that have slowed our economy, then we need to take some immediate action to provide relief for the people who need it the most,” she said last week. “Energy prices are reaching record levels and the numbers show that the long-term unemployed in this country is dramatically higher than during the last recession.”

Snowe said a recent economic study included in a report by the Congressional Budget Office highlighted the near-term benefits of extending unemployment insurance.

According to the CBO, the cost-effectiveness of extending unemployment insurance benefits is “large” and the resulting boost to the economy would be faster than nearly any other alternative.

“Two-thirds of our economy depends on consumer spending,” Snowe said, “and certainly those in the low-income category are going to be far more dependent on this additional relief.”

Collins said an extension of unemployment benefits should be part of the second stimulus package, and she said several senators are working on proposals aimed at helping states with their budget shortfalls.

Baldacci hopes Congress will act as quickly on the second stimulus package as they did on the first package, but delegation members say it will take time to craft a package that gets the bipartisan support necessary to become law.