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Obama speaks with the nation's governors on financial crisis

By: Marvin Anderson | 4/15/2011, 4:48 p.m.

President-elect Barack Obama and Vice-President Joe Biden are scheduled to speak with the nation's governors today on financial constraints state economies are facing during the recession.

Obama and Biden's speech at the National Governors Association meeting in Philadelphia comes a day after Pennsylvania Governor Ed Rendell said that U.S. states may face financial shortages totaling $200 billion in 2009 and 2010.

Rendell, who also serves as a chair for the NGA, said states are facing challenges funneling funding into quality health care, unemployment, insurance and food stamp programs.

"Forty-one states are likely to face budget shortfalls this year or next, forcing you to choose between reining in spending and raising taxes," Obama said to the governors at the conference. "But we also have to recognize that any true solution will not come from Washington alone. It will come from all of you."

The NGA reports that twenty states have already cut $7.6 billion from their budgets for 2009 and 30 states said they will face budget deficits totaling more than $30 billion.