The staggering, fairly poor situation of the States, due to unrelenting joblessness and cut-to-the-bone budgets, despite the signs of economic growth, remained the issue of concern for the Governors at the Governor's Association Meeting.

"The worst probably is yet to come", warned Gov. Jim Douglas, R-Vt., Chairman of the National Governors Association.

The States is expected to face budget holes totaling $134 billion over the next three years, which is evident due to declining tax collections.

"A year ago we were facing an economic abyss. The President pulled us back from the brink. But we have more to do", said Delaware Gov. Jack Markell, the Head of the Democratic Governors Association.

The moribund situation shows that the national unemployment rate fell to 9.7%, while 17 states entered 2010 with double-digit joblessness and more job losses are anticipated.

Ohio Gov. Ted Strickland called for an extension of soon-expiring unemployment benefits and more access to working capital.

In the three-day gathering, Governors covered sessions on the economy, energy, health care and education with Cabinet officials.