Economic Crisis, Governors | featured news

Gov. David A. Paterson cited the state’s financial problems in announcing a decision that reverses an earlier pledge.

On the recession's front lines, governors are struggling to chart the road ahead for states staggered by unrelenting joblessness and cut-to-the-bone budgets even as Washington reports signs of economic growth.

"The worst probably is yet to come," warned Gov. Jim Douglas, R-Vt., chairman of the National Governors Association, at the group's meeting Saturday. He called the situation "fairly poor" in most states, adding that it "doesn't look too good."

U.S. President Barack Obama sought on Monday to bolster political support for the $787 billion economic package, telling the nation's governors that the money would go out quickly and be spent wisely.

An array of Republican governors said they would reject at least some of the funding available under the Obama administration's economic-stimulus package.

Most Republican governors have broken with their GOP colleagues in Congress and are pushing for passage of President Barack ...