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  • Say No to Bailout of State Budgets

    President Obama and Congress are proposing to spend billions to bail out the states, and they have the audacity to call it a “stimulus” package. They’ve taken up the mantle of the “pushover parent,” who bails out the kids everytime they make a poor choice or use up their allowance too quickly. The “pushover parent” fails to recognize that preventing a child from suffering the consequences of his or her choices is a far more war-torn route in the long run. The short-sighted, ill-advised, and over-eager enthusiasm toward a federal bailout of the states will bring severe consequences for us all.

    A federal bailout, like that of a pushover parent, sends a message that states (children) don’t have to be responsible for their out-of-control spending (behavior). The difference between a federal bailout and pushover parent bailout is that the parent uses his own bailout money, but the federal government uses yours. Why should taxpayers be forced to rescue states that have mismanaged taxpayer dollars?

    Washington state provides the perfect example of what not to do. The governor and legislature are expecting a $2 billion windfall from the feds for general operations (Medicaid) and over $800 million for “shovel-ready” (i.e. pork) projects. Rather than making hard choices now to offset the 34 percent in spending increases they’ve assumed over the last four years, they’re counting on a handout and a prayer to get them through.

    Past federal bailouts of the states have resulted in decreased state sovereignty, encouraged future fiscal irresponsibility and rewarded the most fiscally irresponsible states at the expense of the states that have been fiscally responsible. A federal bailout significantly erodes the constitutional “Republic” form of government. It will mean that state legislators will lose their ability to control the state budgets – Congress will, in effect, control many aspects of state spending.

    Bob Williams is the Founder & Senior Fellow of Evergreen Freedom Foundation

    Posted in Ongoing Priorities [slideshow_deploy]

    5 Responses to Say No to Bailout of State Budgets

    1. Arlin Dell, Charlott says:

      Use our money for doing what Gov. is supposed to do….protect us and provide essential services. Gov. should not be spending our money rewarding companies for their stupid mistakes by bailing them out.

    2. New Lousianan Republ says:

      How dost I veto said bailout good sir?

    3. Joe Lupinski says:

      Can anyone in the Republican Party stand up and state a clear articulate responce to this bailout?

    4. Ozzy6900, CT (The Bl says:

      Every time the States screw up their budget, they go running to the Federal Government. My own State of CT included. The States are supposed to be sovereign according to the Constitution. It's about time they started living within their own means.

    5. Jonathan, NY says:

      This article seems to assume that the states' current fiscal crisis was caused merely by bad budget decisions. I'm sure there were probably bad decisions, but obviously the current shortfalls in revenues are caused by the recession, which started in the private sector. If the federal government doesn't bail out the states, then the states will probably raise taxes, which will worsen the recession. At least during periods of deflation, the federal government has the opportunity to monetize some of its debt, which is something the Fed seems willing to do.

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