Predictably, Congress’ Latest Public Unions Payoff Is Poorly Targeted

Predictably, the $26 billion aid package passed on Tuesday that the Democrats claim was required to prevent massive teacher layoffs includes millions of dollars for states that were never facing the prospect of teacher layoffs.  Assuming (a big assumption, I know) that these states use the money wisely — i.e. they don’t fund more permanent state jobs or higher state wages and benefits with it — I don’t really have a problem with this.

To be clear, the latest $26 billion union payoff is a complete waste of taxpayer money.  States who need to cut spending will not have to cut spending, and my prediction is that much of the money will be used to hire more state workers or increase teacher salaries and/or benefits.  All this does is further over-obligate the same states who already spent themselves into a whole.  Once this latest round of bail-out money is gone, the same idiots will be left scratching their heads trying to figure out why they are still broke, or even more so.

But the more responsible states who kept their budgets in line with revenues have citizens who contribute federal taxes as well.  There is no reason those states should not get an equal share of this wasteful spending.  I would prefer that the money not be borrowed and spent at all, but I also don’t think it would be fair to continue bailing out California with, for example, loans that will have to be paid back in part by people in North Dakota.  If it has to be spent, let some of it be spent by states who have been acting responsibly.

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Published in: on August 11, 2010 at 11:24 am  Leave a Comment  

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