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Bailout for the states?

Pressure is building for President Obama and Congress to do something to help the states, which are slashing spending, jobs and social services to balance their budgets. California Gov. Arnold Schwarzenegger (in photo) argued Sunday on NBC's "Meet the Press" that California pays more in federal taxes than it sees in federal aid, so "the federal government owes us billions of dollars." Nationwide, the state budget gaps add up to $350 billion for fiscal 2010 and 2011, noted New York Times columnist Bob Herbert, who called it "an arrow aimed straight at the heart of a robust national recovery" that demands substantial federal help.