Timothy Firestine: We need a reliable and confident government that will help the crisis

“We need to make sure these hearings aren’t merely a fact-finding expedition or whether it is laying the groundwork for action in Congress next month on a stimulus package,”Ranking member, Jim McCrery, said at the Ways and Means Committee hearing on Economic Recovery, Job Creation and Investment in America.

The Governor of New York, David Paterson, stated that as part of the second economic stimulus package, states need direct and immediate fiscal relief to help close their massive budget deficits. “Much of the good that would be done through proposals like expanding unemployment or food stamp benefits would be undone if states do not receive necessary federal budget relief,” Paterson said.

The Governor of South Carolina, Mark Sanford, said that he doesn’t believe that throwing more money to the institutions that put our economy in this situation is the way to go. Sanford said that no matter what amount of money is thrown at the consumer, individuals and businesses will likely choose to wait to make their purchases or investments. “Essentially, you’d be transferring taxpayer dollars out of the frying pan- the federal government- and into the fire- the states themselves,” Sanford said. Sanford believes that giving states more freedom, flexibility, and more options instead of more

Chief Administrative Officer for Montgomery County, Maryland, Timothy Firestine, said that it is important to note that while the state and local governments are suffering the effects of the current credit crisis, the general problems in the municipal market are not due to any fundamental problem with the underlying credits themselves. “In a quest to stimulate the economy, create jobs and help state and local governments, Congress could act to infuse capital in the municipal securities market in order for governments to begin vital infrastructure projects,” Firestine said.

Firestine and Sanford both agree that any taxation would exacerbate the economic crisis and they both stated that if anything needs to be done with taxes it would be to lower them.