Schwarzenegger Urging The President-Elect To Invest In Infrastructure

Urging The President-Elect To Invest In Infrastructure
Putting Two Of California’s Long-Held Priorities On The National Agenda

“President-elect Obama is a big believer in infrastructure and in rebuilding America. And I have been, ever since I became governor, a big believer in rebuilding California and also rebuilding America.” (Gov. Arnold Schwarzenegger, 12/1/08)


Governor Schwarzenegger has long made re-building California a number one priority on both the state and the national level. Today, in his first face-to-face meeting with President-elect Barack Obama in Philadelphia at a meeting of the National Governors Association, Governor Schwarzenegger will make certain that federal investment in California’s infrastructure is on the next President’s agenda. Governor Schwarzenegger will reiterate to the President-elect what he and his “Building America’s Future” counterparts, Pennsylvania Governor Ed Rendell and New York Mayor Michael Bloomberg have been saying since January: that federal investment in infrastructure will not only create tens of thousands of jobs now, but ensure long-term economic growth and continued global competitiveness. Also, Governor Schwarzenegger will join his fellow Governors in calling on the federal government to reassess the Federal Medical Assistance Percentage (FMAP).

Governor Schwarzenegger will ask the next President for action on two of California’s long-held priorities: infrastructure investment and federal involvement in Medi-Cal.

INFRASTRUCTURE:
Governor Schwarzenegger is asking the next President to follow California’s lead and implement an immediate and massive federal infrastructure investment program. In 2006, Californians voted to rebuild the Golden State with $42 billion in infrastructure investment - money that is being pumped into our economy now. However, over the next twenty years California needs more than $500 billion of infrastructure. The Federal Government, by investing in the nation’s infrastructure, can take immediate action to create the jobs and economic stimulus we sorely need.
Ø At a minimum the Federal government should return physical infrastructure expenditures to historical levels. Expenditures have declined to 2.7 percent of gross domestic product, from 3.6% in the 1960s.
Ø California has more than $28 billion of projects ready-to-go within the first 120 days of the Obama Administration: These energy and energy efficiency, water, education, rail, bridge, road and levee projects need nothing other than funding to get shovels in the ground or installers in the field.
· Energy-related infrastructure not only boosts jobs and lays the foundation for future economic growth but also improves America's energy security and enhances the country's environment.
Ø Investment will create tens of thousands of new jobs. Studies indicate that for every one billion dollars of infrastructure investment, 18,000 to 47,500 jobs are created.
Ø Taking down barriers to public-private partnerships will increase funding for infrastructure, improve efficiencies and boost employment.

FEDERAL MEDICAL ASSISTANCE PERCENTAGE (FMAP):
To relieve the stress the current economic crisis is placing on California’s Medi-Cal program and General Fund, the Governor will ask President-elect Obama to increase the federal share of Medi-Cal. We currently receive 50 cents on the dollar for our Medi-Cal program and the Governor is pushing for a temporary increase.
Ø Increasing the federal medical assistance percentage (FMAP) would help California stay afloat in this economic downturn when Californians rely on this program the most. A temporary increase will help reduce the financial strain of increased Medi-Cal enrollment and free up General Fund dollars for other uses and savings.
Ø The overall FMAP formula must be re-evaluated, as the current formula puts California and other high-income states at a huge disadvantage. The overweighting of income for determining Medicaid matching rates is a contributing factor to California's huge fiscal imbalance with the federal government where we sent $50 billion more to Washington in 2006 than we got back.

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