Area congressmen remain supportive of bailout

Both of the area's congressmen, Jerry McNerney, D-Pleasanton, and Dan Lungren, R-Gold River, voted to approve the economic recovery plan. The two, who are both seeking re-election in November, expressed concerns about how any further delays in approving the legislation would harm the economy.

"I am just as angry and frustrated as many of those who have called my office that we had to consider this recovery package," McNerney said in a statement released Friday. "But I voted for it because my constituents' 401(k)s, their life savings and the ability to take out car, home and student loans hang in the balance.

"And now we're hearing that because California is so short on cash and can't get a short-term loan, it may seek $7 billion from the federal government to finance state operations," McNerney said. "Failure to secure the funds may mean scheduled payments to 1,000 school districts statewide won't take place and state employees could be laid off."

Lungren's remarks from the House floor were posted to the politician's Web site. The congressmen focused on the nation's worsening credit crunch.

"Just last night, the governor of the state of California wrote a letter to the Secretary of the Treasury indicating that California may very well have difficulty floating $7 billion in short-term loans to cover expenses.

"I can't recall when that ever happened before, and the reason for this appears to be the squeeze on the credit market. ... This is not a perfect bill, certainly. I wouldn't ever argue that this is a perfect bill, but this is the best we have right now. I would ask my colleagues to please support this bill."

Lungren's Democratic opponent, Bill Durston of Gold River, opposed the bailout, arguing it increased the government's deficit and that the resources of fighting a war could be better used rebuilding the economy.

"The sky will not necessarily fall if we leave those financial institutions that engaged in unsound business practices during the sub-prime mortgage frenzy to fend for themselves, just as most of us private citizens would have to do in analogous circumstances," Durston said in a statement. "People who have money invested in mutual funds and stocks will see a temporary drop in the value of their portfolios, but these values will go back up as the economy stabilizes."

McNerney is being challenged by Stockton Republican Dean Andal. Andal's staff said he could not be reached for comment Friday afternoon.