Tuesday, February 09, 2010
The States and the Stimulus - WSJ.com
Governments at work.
Specifically, big government helping smaller governments get worse.
Are our elected officials oblivious or unconscious? Likely, it's both...
Specifically, big government helping smaller governments get worse.
Are our elected officials oblivious or unconscious? Likely, it's both...
These snippets are from a Wall Street Journal Article about the impact of the "stimulus" money:
"Revenues are down, to be sure, but in several ways the stimulus has also made things worse.
First, in most state capitals the stimulus enticed state lawmakers to spend on new programs rather than adjusting to lean times. They added health and welfare benefits and child care programs. Now they have to pay for those additions with their own state's money.
For example, the stimulus offered $80 billion for Medicaid to cover health-care costs for unemployed workers and single workers without kids. But in 2011 most of that extra federal Medicaid money vanishes. Then states will have one million more people on Medicaid with no money to pay for it."
...
"Second, stimulus dollars came with strings attached that are now causing enormous budget headaches. Many environmental grants have matching requirements, so to get a federal dollar, states and cities had to spend a dollar even when they were facing huge deficits. The new construction projects built with federal funds also have federal Davis-Bacon wage requirements that raise state building costs to pay inflated union salaries.
Worst of all, at the behest of the public employee unions, Congress imposed 'maintenance of effort' spending requirements on states. These federal laws prohibit state legislatures from cutting spending on 15 programs, from road building to welfare, if the state took even a dollar of stimulus cash for these purposes."
