High gas prices pinching states, too
The governors were interviewed during the annual meeting of the Southern Governors Association, which opened a three-day meeting at a lakeside resort here on Sunday.
“The price of gas at the pump has impacted this nation. It’s killing all of us,” said West Virginia Gov. Joe Manchin, a Democrat. “We’re seeing it in the cost of doing business running the state. We’re seeing it in the cost of a family trying to take care of themselves.”
He added, “We’re a rural state that depends on mobility for being able to go to work. It’s really impacting us.”
Tennessee Gov. Phil Bredesen, a Democrat, said his state has “fairly strong reserves” and hasn’t experienced a problem yet but he added, “It’s something we’re paying attention to.”
Virginia also has a fairly healthy surplus, said Democratic Gov. Mark Warner, but it also has some unexpected costs, including federal cuts to the Medicaid program and military base closures.
“On a relative basis, the Medicaid and base realignment costs at this point are greater,” he said. The state’s rising fuel costs are “in the millions of dollars, not the tens or hundreds of millions.”
In South Carolina, “We’ve not yet seen it ripple through in terms of our tax revenue. I think it will ripple through, and I think it will impact both tax revenues and the budget overall,” said Gov. Mark Sanford, a Republican.
He added, “I’m worried about what happens next in regards to the economy … If this trend holds regarding gas prices, I think it has frightening consequences not only in South Carolina but, frankly, nationwide.”
And what will voters do in the midterm elections next year if gas prices stay high?
“I’m sure there’ll be some political hack somewhere that will try to blame someone for something. They always do,” said Texas Gov. Rick Perry, a Republican. “But by and large the electors are smarter than that. They realize prices go up and down because of supply and demand.”
Virginia’s Warner commented, “I don’t get the sense that consumers have fixed the blame yet … I think we may be one event away or some catalyst away from that blame being pointed at Washington or the administration. I’m not sure it’s there yet.”
Arkansas Gov. Mike Huckabee, a Republican, said voters “aren’t always able to distinguish issues that elected officials should be blamed for and ones they shouldn’t.” This is one they can’t control, he said.
Georgia Gov. Sonny Perdue, a Republican and this year’s SGA chairman, said, “I don’t see a partisan component to this. I see a certain anxiety.”
People in pain want answers and solutions, he said, but he added, “Solutions are very limited in a country that believes in free markets.”
The conference continues through Tuesday.