Sunday, March 14, 2021

Look at all that Money Red States are getting from the Blue State Bailout


Photo from Center for a Responsible Federal Budget

Twenty-One Republican Governors were whining last week about the American Rescue Plan.

Was it because they agreed with their Republican Colleagues in Congress that State and Local Aid should not be part of the legislation?

Hell No.

As former New Jersey Governor Chris Christie said on the March 14 edition of ABC's This Week with George Stephanopoulos:

"Now, governors, having been one, if you're going to give me money, then I don't have to raise taxes to raise revenue myself. In my state, we -- we've seen a budget increase over the last four years from $34 billion to $44 billion in four years. We've seen taxes go up every year. And now my state, which did not have a revenue loss beyond about 1.5 percent, is now going to get $6 billion more from the federal government. Man, if you're the governor, you're like, sure, you're going to send me that money and I'll spend it. Of course, I'll spend it.

So, of course, they -- Jim Justice is going to spend the money because Jim Justice is now going to get to spend money that he's going to be able to say to his conservative constituency, I didn't raise taxes. This is revenue for -- it just came in. What was I supposed to do with it?"

They are whining because the formula for state and local aid was determined in part by unemployment and poverty rates in addition to state population numbers.

Most of these Governors, of small red states, much preferred the CARES Act formula which had a higher base minimum amount for populations ($1.25 billion) when compared to the American Rescue Plan ($500 million.)

The Governors further contend the Biden/Harris Administration is penalizing them because they did not adopt as many stringent COVID 19 prevention measures as the states that did and have a higher unemployment rate as a result.

With the different funding formula, 23 Republican-led states will get less money than if it was based solely on population along with ten states led by Democrats.

With both Republican and Democratic states getting adjusted lower with the new formula, there does not seem to be a deliberate bias here to hurt just Republican-led states.

It is hard to feel sorry for the amounts the red/purple states are getting in state and local aid:

  • Texas: $27 billion.
  • Florida: $17 billion.
  • Ohio: $11 billion
  • North Carolina: Nine billion.
  • Georgia: Eight billion.
  • Arizona: Eight billion.

Please click here to see what all the 50 states are receiving.

Overall, according to an analysis by Reuters, 61 percent of American Rescue Plan aid to the state's funding goes to states Joe Biden won. In the original CARES Act, that total was 56 percent.

That is not a major shift.

So it is ludicrous to say this is a bill that is a blue state and city bailout.

Just look at all that money the Red States are receiving and not giving back.

Call out Republicans in Congress and those that whined about what they would receive again for trying to spread another big lie.

It is time they started participating in governing again instead of obstructing when a Democrat is in the White House.

 

 

 

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