Clyburn talks bailout

U.S. House majority whip wants $300B recovery; S.C. lawmakers discuss additional budget cuts

COLUMBIA — U.S. House Majority Whip Jim Clyburn discussed ideas Monday for ways to pull the national economy out of a deep recession.

Meanwhile, state officials discussed the best way to help agencies cope with South Carolina's budget crunch.

The National Bureau of Economic Research announced Monday that the country first fell into recession a year ago this month.

Clyburn, the third-ranking leader in Congress, wants a recovery package worth about $300 billion that will include aid to auto makers, the creation of jobs to rebuild America's infrastructure and money for struggling states.

The South Carolina Legislature cut nearly half a billion dollars from the budget in October that left state spending at $6.6 billion, and more cuts are on the way.

State Comptroller General Richard Eckstrom sent Gov. Mark Sanford a letter Monday that explained why Eckstrom believes state agencies should be dealt the next round of cuts as soon as possible.

The sooner cuts are ordered, the easier they are to absorb at the agency level, Eckstrom said.

Late last month, Sanford asked agencies to voluntarily set aside 4 percent of their budgets now while asking the Legislature to target whatever cuts are necessary when lawmakers return in January.

On the national stage, Clyburn, a Democrat, said Congress should push ahead with a plan for a long-term economic recovery plan for President George W. Bush to sign before he leaves office, or have one ready as soon as President-elect Barack Obama takes over.

Clyburn said to save jobs across the country, the federal government should provide a bridge loan to Detroit's Big Three automakers but that the $25 billion in aid should come from the previously approved bailout package.

And as part of any deal, Congress should force out the executives who run General Motors Corp., Ford Motor Co. and Chrysler LLC, he said.

"If I had my way, all three of those guys would be in the unemployment line," Clyburn said.

The next economic recovery plan should be broader than the previous, Clyburn said. It should include money for the creation of jobs to rebuild roads, bridges and schools and extend public water and sewer, he said.

Additionally, Clyburn said he would like to see the federal government provide funds to states for food stamps, extended unemployment and programs such as Medicaid and health insurance for poor children.

If the federal government is creating jobs but the states are laying off, "that defeats the purpose," Clyburn said.

Douglas Woodward, director of Division of Research and professor of economics at the University of South Carolina's Moore School of Business, said Congress must look at short- and long-term solutions.

"What Congressman Clyburn talks about make a lot of sense long-term," Woodward said. "The price tag sounds reasonable"

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