U.S. governors fret over budget trims

Feb. 27, 2011 at 11:29 AM

WASHINGTON, Feb. 27 (UPI) -- Five days before the United States goes into a second year without a formal budget, state governors issued a bipartisan fiscal warning in Washington.

The 3-day annual convention of the National Governors Association focused on Democratic President Barack Obama's proposed budget and the Republican party's goal of making it even leaner to pare down the national debt.

Democrat Gov. Chris Gregoire of Washington State, who is chairman of the NGA, told a news conference Congress needs to be aware of the fragility of states' economies, The Washington Post reported.

"This is a critical time, where the states are facing a $175 billion shortfall in the next two years," Gregoire said. "Anything Congress does to undermine economic recovery would be very troublesome to us."

Obama's 2010 budget was never approved by Congress and the country is operating under a "continuing resolution." Friday is the deadline to enact a budget.

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