At a time when huge spending bills marked "Coronavirus relief" are easily passing Congress with little scrutiny, poorly run states are asking unscrupulous members of Congress to slip in taxpayer bailouts to rescue them from years of their own fiscal mismanagement.
People are suffering, and federal taxpayers have already sent states and localities hundreds of billions of dollars to help pay for expenses related to fighting the coronavirus.
States have received more than $200 billion in grants and $500 billion in loans to municipal governments.
Some states haven't even spent all of their coronavirus grant money because the pandemic didn't hit them as hard as anticipated, yet many are asking for more.
Sen. Rick Scott, a Florida Republican, is one of the voices in Congress speaking out against state bailouts, calling the funding "a piggy bank for unrelated expenses that have nothing to do with responding to the coronavirus." He rightly warns that the money will be used to bail out pension plans, reward decades of mismanagement, and encourage states to become even more dependent on the federal government.
In 2003, states received $20 billion in federal aid, but instead of balancing their books, many states just increased their spending and debt.
Again in 2009, much of the $300 billion slated for state governments to help them recover from the recession was used instead to permanently expand government programs.
https://www.dailysignal.com/2020/05/22/a-bailout-wont-help-states-with-no-financial-backbone/
People are suffering, and federal taxpayers have already sent states and localities hundreds of billions of dollars to help pay for expenses related to fighting the coronavirus.
States have received more than $200 billion in grants and $500 billion in loans to municipal governments.
Some states haven't even spent all of their coronavirus grant money because the pandemic didn't hit them as hard as anticipated, yet many are asking for more.
Sen. Rick Scott, a Florida Republican, is one of the voices in Congress speaking out against state bailouts, calling the funding "a piggy bank for unrelated expenses that have nothing to do with responding to the coronavirus." He rightly warns that the money will be used to bail out pension plans, reward decades of mismanagement, and encourage states to become even more dependent on the federal government.
In 2003, states received $20 billion in federal aid, but instead of balancing their books, many states just increased their spending and debt.
Again in 2009, much of the $300 billion slated for state governments to help them recover from the recession was used instead to permanently expand government programs.
https://www.dailysignal.com/2020/05/22/a-bailout-wont-help-states-with-no-financial-backbone/
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