Obama Gauges States of the Union

FIVE MONTHS AGO, Barack Obama made history in Philadelphia with a speech on race prompted by reports about his pastor, Jeremiah Wright.

Today, he has another chance to make history when he meets at Independence Hall with at least 40 of the nation's governors to hear how they're coping with the economy.

It's already historical that such a newly minted president would meet with the governors' group before his administration even started, and the move gives us great confidence that President-elect Obama recognizes the importance of states and cities. It's also clear how he values early input from all parties before crafting solutions.

Hosted by Gov. Rendell, the meeting will likely focus on a rescue package for beleaguered cities and states.

We hope that whatever rescue plan the group comes up with, it departs from the way the last two bailouts have gone.

The first, the $700 billion financial industry bailout, was rushed to Congress, quickly passed, and has so far done nothing to ease the credit markets it was supposed to help. The plan behind the money has changed a few times since it was actually issued. Another bailout, for the auto industry, lacked so many details that even Congress walked away.

If the federal government is going to give billions of dollars to state and local governments, clear outcomes should be tied to every dollar. And the cash for this rescue plan should be used to tackle long-term fiscal issues.

One example is pensions. Two weeks ago, Mayor Nutter petitioned Treasury Secretary Hank Paulson for a loan from the Federal Reserve to cover Philadelphia's unfunded pension liabilities. This great idea, allowing the city to get a better interest rate than currently available from Wall Street, is just one example of how the federal government could creatively help state and local governments. The best part? Since the funds would be a loan, taxpayers could actually stand to make money on the deal.

Infrastructure investment is also important. Already, Obama has said that we need a massive stimulus bill, part of which would involve putting people to work on projects such as rebuilding roads and bridges. In a state where the average bridge is 50 years old, that type of investment is desperately needed.

These initiatives should also include mass-transit projects such as subway and light rail, which are often overlooked.

We hope today's pow-wow is the first of many between the president and state and local leaders.

Palin Pallin'?

Guess who's pallin' around with terrorists?

Sarah Palin!

During the campaign, she accused Barack Obama of that transgression because he attended some meetings where former radical Bill Ayers was present. So by attending the governors' meetings, as she is scheduled to do, and meeting with the man who used to pal around with terrorists, by her own logic, Gov. Palin is practically a terrorist, too. In case this occurs to her mid-meeting and she decides she better leave the room, she could always go to the nearby Constitution Center . . . to read the document.

She might also want to check out the Neiman-Marcus outlet in Franklin Mills. Since Alaska is now not so flush with oil money, she'll be happy to know she can buy her designer duds at deep discount. *