Latest ‘state bailouts’ create even bigger problems for some

August 11, 2010

This week, the House of Representatives interrupted its “August Recess” to rush back to Washington to pass yet another ‘emergency’ bailout; this time, a $26-billion spending package the nation cannot afford, to supplement pay for state workers the states cannot afford.

Even the states themselves are beginning to share their concern with this unsustainable cycle of continued ‘emergency’ federal bailouts:

According to today’s Wall Street Journal, this latest state bailout will force many states to spend more – not less – and drive them further down a path of unsustainable spending.

Governor Haley Barbour of Mississippi did the math and figured out his state will be worse off. Mr. Barbour says the bill will force his state “to rewrite its current year [fiscal 2011] budget. Preliminary estimates of the Mississippi Department of Finance and Administration show that we will now have to spend between $50-100 million of state funds—funds that must be taken away from public safety, human services, mental health and other state priorities and given to education—in order for an additional $98 million of federal funds to be granted to education. There is no justification for the federal government hijacking state budgets, but that is exactly what Congress has done.”

For Texas, and only Texas, this funding rule will be in place through 2013. This is a form of punishment because the Beltway crowd believes the Lone Star State didn’t spend enough of its 2009 stimulus money. Apparently Texas politicians have been clinging to the quaint notion that the government should try to live within its means.

Texas Governor Rick Perry is also opposed to this new “assistance” from the federal government. He understands that one-time payments that force permanently higher state obligations are a windfall for government employees. But if given the choice, taxpayers would just say no.

Click here to read the entire article.

Today’s Cleveland Plain Dealer tells a similar story:

By approving $26 billion in new spending nationally, Congress will ensure that Ohio gets more than $880 million. Yet much of that is supposed to help states with Medicaid budget shortfalls, a problem Ohio doesn’t have.

More than $880 million in fresh economic aid is coming to Ohio thanks to Congress — whether Ohio needs it all or not.

“But state Republican lawmakers suggested that however the money is used, it could put Ohio in a bind later because the state will have expanded programs it could not afford in the first place. When the money runs out, the state’s looming problems will be hundreds of millions of dollars deeper, they said.”

Click here to read the entire article.

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3 Responses to Latest ‘state bailouts’ create even bigger problems for some

  1. Mary Pickar says:

    I say that we should force each and every member of the Legislative and the Executive branches to live for 1 month in a regular house with a regular car (the only allowable benefit would be body guards) and a regular factory job making minimum wage. Most of them wouldn’t last 1 day without caving. They think that they can spend money that isn’t theirs on whatever pet projects they want without answering for it. Clinton had a great idea, but it was shot down by the Supreme Court as being “Unconstitutional,” when he enacted the Line-Item Veto. If these people knew how hard it is to actually WORK for their money – physical, painful, agonizing labor – just to have up to 25% of their pay taken (and possibly more at tax time) for these unnecessary pork barrel appropriations, maybe they would wake up.
    The only problem that I see is that they know after the month is over, they get to return to their cushy jobs and high profile lives and forget their experiences. It is time that we create a NEW ‘WE THE PEOPLE!”

  2. Mary Pickar says:

    I say that we should force each and every member of the Legislative and the Executive branches to live for 1 month in a regular house with a regular car (the only allowable benefit would be body guards) and a regular factory job making minimum wage. Most of them wouldn’t last 1 day without caving. They think that they can spend money that isn’t theirs on whatever pet projects they want without answering for it. Clinton had a great idea, but it was shot down by the Supreme Court as being “Unconstitutional,” when he enacted the Line-Item Veto. If these people knew how hard it is to actually WORK for their money – physical, painful, agonizing labor – just to have up to 25% of their pay taken (and possibly more at tax time) for these unnecessary pork barrel appropriations, maybe they would wake up.
    The only problem that I see is that they know after the month is over, they get to return to their cushy jobs and high profile lives and forget their experiences. It is time that we create a NEW ‘WE THE PEOPLE!”

  3. Mary Pickar says:

    I say that we should force each and every member of the Legislative and the Executive branches to live for 1 month in a regular house with a regular car (the only allowable benefit would be body guards) and a regular factory job making minimum wage. Most of them wouldn’t last 1 day without caving. They think that they can spend money that isn’t theirs on whatever pet projects they want without answering for it. Clinton had a great idea, but it was shot down by the Supreme Court as being “Unconstitutional,” when he enacted the Line-Item Veto. If these people knew how hard it is to actually WORK for their money – physical, painful, agonizing labor – just to have up to 25% of their pay taken (and possibly more at tax time) for these unnecessary pork barrel appropriations, maybe they would wake up.
    The only problem that I see is that they know after the month is over, they get to return to their cushy jobs and high profile lives and forget their experiences. It is time that we create a NEW ‘WE THE PEOPLE!”

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