By Matt Holdridge
From the Washington Times:
States say they’ve been kept afloat during the economic downturn by critical federal aid, but, with stimulus money set to run out soon, a report from conservative economists argues that another infusion would postpone, and could worsen, states’ eventual reckoning with troubled budgets.
Last year’s stimulus bill designated hundreds of billions of dollars to states, either directly or indirectly. The aid peaked this year before dropping dramatically. States say they’re still hurting, though, and Congress is trying to figure out how much more aid to extend, and for how long.
The article continues,
Jonathan Williams, director of the tax and fiscal policy task force at the American Legislative Exchange Council, said continued federal aid will only feed “the do-something disease in Washington,” where the federal government sees a problem and decides taxpayer money can help.
In a new report on states’ fiscal stability, Mr. Williams and several other conservative economists said the stimulus amounted to a “get-out-of-jail-free card” for state lawmakers who let their budgets grow too fast while the economy was strong but were reluctant to make cuts during slimmer times.
“The recession should have been the wake-up call: Pull back on spending. Unfortunately, the stimulus money is interfering with this normal, albeit painful, corrective step to get states permanently back on more sustainable spending paths,” they said in their report.
This underscores the importance of being involved in your local and state government. We can solve a lot of problems in Washington by being active outside it.