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Obama economic advisor warns stimulus battle not over
Posted: 02.08.2009 at 4:45 PM
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WASHINGTON, DC (AP) -- One of President Barack Obama's top economic advisors is forecasting a difficult struggle with Congress over the Senate's version of an economic stimulus package.

The $827 billion Senate version is expected to pass on Tuesday. However, senators cut $40 billion for state and local governments in order to win needed support from a handful of Republicans

Lawrence Summers, chairman of the White House National Economic Council, says leaving out the money for state and local governments is a mistake. In appearances on ABC's "This Week" and "Fox News Sunday," Summers warns that without that infusion of money, the country may still face a "vicious" cycle of layoffs, falling homes values and lower property taxes.

The House has already passed its $819 billion version of the measure. Lawmakers are likely to begin reconciling those differences later this week, with Obama still pressing to have the stimulus measure on his desk for signing by mid-month.

(Copyright ©2009 by The Associated Press. All Rights Reserved.)

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