In 2009 Governor Freudenthal initially resisted taking the bulk of the Obama administration’s “stimulus” money. He eventually caved in, but he now has the chance to remedy at least part of that mistake. In another reckless spending package, Congress is throwing yet more federal funds at states. This time the the Democrats are doing it to save teachers’ jobs and please the teachers’ unions while yanking funds for food stamp programs. Fortunately, there are politicians at the state level who have the backbone to stand up to another round of federal debt pile-up. Nebraska governor Heineman is balking at taking any of the money, an example Governor Freudenthal should follow:
Nebraska Gov. Dave Heineman is worried that state lawmakers might have to spend $30 million more to qualify for $59 million in new federal funds for teacher salaries. The federal money is part of a $26 billion aid package the U.S. House approved Tuesday in a special, one-day session during its August recess. The 247-161 vote went mainly along party lines, with Midlands members voting against. The bill was intended to help states that are struggling to balance the books in the face of recession-devastated tax revenues. Nebraska is eyeing a projected $751 million budget gap. Heineman said state officials are seeking clarification but said it appears that Nebraska would be required to spend an additional $30 million on K-12 education to qualify. “I don’t think the federal government should be dictating that we spend more money to get more money,” Heineman said after a State Capitol event.
For every dollar the federal government forces states to spend as part of the Obama administration’s flawed, failed and fiscally reckless “stimulus”, state taxpayers will lose another dollar they could have spent at local businesses to get their local economy going again. When the federal government is using taxpayer money to bail out its pet interest groups, the waste and mismanagement is even more egregious.
Hopefully Governor Freudenthal will make the right decision.