Five Democratic Governors asked the federal government for a $1 trillion bailout package.

The bailout package requested by the governors from Wisconsin, Massachusetts, New Jersey, New York and Ohio also includes $250 billion for education and $150 billion in middle class tax cuts. The plan was presented to Barack Obama’s transition team and to the Congress as well. According to Wisconsin Gov. Jim Doyle, Obama’s aides as well as congressional leaders have been receptive to the plan. Mr. Doyle added that several other Governors were behind this idea which grew from a meeting Obama had with the nation’s governors in December.

The main difference is that Obama’s transition team and congressional leaders have been talking about a package that would be about ½ the size of governors’ bailout package.

The five Governors also said the bailout package would include $350 billion for infrastructure projects and $250 billion in funding for programs such as Medicaid, food stamps, and unemployment benefits.

Most governors complained about the unprecedented budget shortfalls their states are facing. For example, New York is facing a $15.4 billion deficit; Ohio’s deficit could grow to as much as $7.3 billion, while Wisconsin's budget is expected to be $5.4 billion in about 2 to 3 years.

"The assistance would be mammoth for us," Governor David Patterson of New York said.

The five Governors are hoping President Elect Barack Obama will agree. However, they haven’t agreed among themselves yet on how the money will be distributed and what restrictions should be placed on their spending.

The federal money would help the states continue essential services for about two years and are not an invitation to increase spending, the five governors underlined.