The Brian Sullivan Blog
  • February 18, 2009 10:02 PM EST by Brian Sullivan

    Should States Vote On Accepting Stimulus Money?

    Do we have a stimulus split coming?

    News breaking Wednesday night that a few GOP state governors are considering turning down stimulus money, citing concerns about attached Federal strings and the long-term impact of the borrowed money.   Meantime left-leaning blogs are egging the Governors on, suggesting that if they so opposed the stimulus plan then declining the money is exactly what they should do, clearly believing it will never happen.   Is it impossible?

    Most states are in dire need of money.    By some counts 43 states are going to run large fiscal deficits this year.   But there are those governors, such as Louisiana's Bobby Jindal, who believe that the long-term negative impact of the money may outweigh even the near-term cash influx, and he is seriously considering turning down the Bayou State's share of the stimulus.

    You have to respect Jindal's guts in even suggesting this, and more states seem to be following suit with his thinking.   But while those who oppose the plan are likely hi-fiving over this stance, there is a very real problem with it: citizens of states who may turn down money may still end up paying for the plan and risk getting little in return.

    It's why - political pundit blog sarcasm aside - many members of the GOP feel they may have to accept the money.    After all, the only thing worse than having a $787 billion dollar plan you didn't support pass, is having a $787 billion dollar spending plan that you didn't support pass and then getting nothing for the cost.   Debt without benefit is the worst result of all.

    Is there a way for states to opt out and yet not have to pay the price?   It's unclear.   The money is so tangled up in various programs that some of it will will hit various states whether they want it or not.    But we need to separate out the national stimulus (energy grid, rail, etc) and the state-specific stimulus.

    Here's one possible solution: states can hold public referendum votes on the plan and whether the citizens want the state to accept the Federal money.   If the citizens vote yes, the money comes to them as it would already under the plan.   If the citizens vote no, then the size of the stimulus is reduced by the amount that would be going to the states, along with a tax credit to each state citizen that would offset the cost to the Federal budget deficit (something we all pay into) over a given period of time.

    The issue is very complex from a tax and deficit aspect and so I will leave it for people smarter than I to figure out the details.   However it would work, any state that turns down the money would have to see some compensation for it citizens, because the cost to the Federal government would eventually fall on their shoulders and they would've seen nothing from the plan itself.   None of us can avoid the growing national debt.

    What started as a comment by Bobby Jindal of Louisiana is now gaining steam among some GOP governors.  Whether they decide to act on their statements we will have to wait and see.

    Let's hope they just remember that they can always hold a special election.   Are they costly?   Yes.   But compared to the stimulus cost its pennies.   Fractions of pennies.   Consider it.

GOP Govs Not Feeling Stimulated | Blago Planet

[...] down some money from the $787B stimulus package • GOP Poised to Leap on Spending Abuses • FOXBusiness: Should States Vote on Stimulus? :bailout, blind, dumb, guilty, [...]

February 21, 2009 at 9:17 am

KnightRider007

What is stupid? Hearing a Democratic rep like what his name to call Southern Republicans racists for not accepting the stimulus package. People are getting tired of being ordered around like robots. Why not punish congress but taking away thier silly perks?

February 20, 2009 at 7:41 pm

darel

Not only should drilling for oil in calif. began, but that damn little fish should not keep water from the farmers like it is doing now. Kill the fish and taoe the mouths of the keepers of the fish.

February 20, 2009 at 1:55 pm

Joseph Potts

So everyone is in agreement that the U.S. Constitution is being violated by the Federal Government of the U.S.A. Then let's fight peacefully first and yes if it comes to that remember the heartland grows the food and let's see if the cities that vote for this type of government can feed themselves.

February 19, 2009 at 6:46 pm

JKSander

AYE!!!

February 19, 2009 at 5:23 pm

JKSander

Good Idea I am for that!!!

February 19, 2009 at 5:16 pm

JKSander

South Carolina isn't perfect but I am sure we can find a way to make due without putting our children children in debit. Besides the money this bill is spending is money we do not even have. I guess that makes it OK for me to write bad checks. Oh I guess our tax payer supported banks would not agree!

February 19, 2009 at 5:13 pm

Grant

I'm glad to see someone mention the good old Declaration of Independence. It is a briliantly written piece of our history that is still relevant today almost 233 years after conception. Sadly though it is not a law and grants no rights to the citizens to abolish, throw off or otherwise alter their government. Only the Constitution or God forbid, another Revolutionary War can do that.

February 19, 2009 at 4:53 pm

Mark

I see where a lot of folks want each state to vote on whether or not to accept the money ... did we forget that we live in a republic and not a democracy? If your senator and/or representative voted for the stimulus against the will of those they represent ... guess it's time to vote them out. I am from Texas and those who supported this will be remembered on election day. Also, the Republic of Texas idea has become an urdan legend of sorts. If I am correct, Texas retains the right to split into four/five seperate states. If the split is denied by the feds, then we have the option to withdrawl from the U.S. And to the person that says all the troops at Foot Hood, the National Guard, and all the equipment really belongs to the feds... ha! We the people pay for everything the feds have ... it would serve you well to remember that.

February 19, 2009 at 4:47 pm

Ladybug

I would suggest that states reject any Fed $ that comes with any strings attached. Accept any $ that comes without strings attached and put it away in a special "Federal Tax Increase Offset Fund" so that when our Federal income tax rates are raised in the very near future to pay for all of this the states can use the money to reduce our state tax rates so citizens break even.

February 19, 2009 at 4:36 pm

Pam

I think credit card companies need to lower their interest rates in order meet the needs of those who are financially unstable.

February 19, 2009 at 4:28 pm

Grant

I think I remember something in History class regarding an atempt at secession. As I recall it didn'st end so well for the Confederate States. There is NO cluase in the Constitution than grants explicit rights to the States to secceed if they wish. And in case you were thinking that your local National Guard Units are controled only by the State Governor you would be wrong. They fall under the jurisdiction of the Federal Gov't. and all wapons and equipment belong to the D.O.D.

February 19, 2009 at 4:27 pm

Listening In Texas

“Texas is a free and independent State ... All political power is inherent in the people ... they have at all times the inalienable right to alter their government in such manner as they might think proper.” — Texas Constitution (1876) “Governments derive their just powers from the consent of the governed... Whenever government becomes destructive to life, liberty, or property [i.e., the pursuit of happiness], it is the right of the people to alter or to abolish it... It is their right, it is their duty, to throw off such government, and to provide new guards for their future security.” — American Declaration of Independence (1776) Our current government IS FAILING us to line their OWN pockets with either dollars or POWER they DON'T really have; but unless we remove it from them; we are ALLOWING them to continue. Arnold in CA showed us a WAY that WAS successful. He had a RECALL ELECTION for the GOVERNOR and defeated him. Anyone remember Gray Davis? It CAN work. Let's begin recall elections on ALL those who VOTED FOR THIS BLATANT misuse of the public trust and misuse of power to reward so few with so much at the expense of rest of the country. This irresponsibility MUST be STOPPED! As Senator John McCain recently stated "this is generational theft"!

February 19, 2009 at 4:12 pm

Grant

Everyone in this country needs to have a copy of the U.S. Constitution on hand. Article 1 Section 8. Clase 18: The Necessary and Proper Clause. The Congress shall have Power - To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.

February 19, 2009 at 4:03 pm

Ladybug

Ian, OH just needs to fire its governor. See Wall Street Journal Mar08 article at http://online.wsj.com/article/SB12045030659590643... ...Texas has been prospering while Ohio lags and the reasons are instructive about what works and what doesn't in economic policy...the Texas economy has boomed since 2004, with nearly twice the rate of new job creation as the rest of the nation...Ohio Governor Ted Strickland...blames his state's problems on President Bush. But Ohio's economy has been struggling for years and most of its wounds are self-inflicted...Ohio politicians deplore plant closings even as they impose the third highest corporate income tax in the country (10.5%) and the sixth highest personal income tax (8.87%)...The challenge for our national economy in a world of competition is to become more like Texas and less like Ohio.

February 19, 2009 at 4:00 pm

john the elder

No they should not reject. Now that this is passed and the people are left holding the bag for this joke, give me the freebies that I will get. Since it doesn't pay to work any longer, I will accept the free stuff from the feds, so give it to the states and don't worry, be happy. By the way, I am going to default on my mortgage and quit making payments so I can join that group also. It does not pay to work or to pay bills on time any longer.

February 19, 2009 at 3:58 pm

mike

What are you talking about? Alaska receives $1.84 for every dollar it sends to Washington. Only New Mexico and Mississippi get more back from the federal government. You are correct that Texas does not need the money. They only get $0.94 back for every tax dollar they send, however, California is in the same position, getting $0.78 back for each tax dollar. http://www.taxfoundation.org/research/show/266.ht...

February 19, 2009 at 3:58 pm

Texas Girl

I double dog dare them to refuse the stimulus money! If they have a point to make they should make it; I am calling their bluff, right here, right now.

February 19, 2009 at 3:55 pm

JeanN

The Gov. of the Great State of Alaska will accept funds for infrastructure projects but will not take any funds slated for government programs that her state would have to fund after federal funds run out. The Gov. from the Great State of Alaska also called for P-Obama to veto the 700 billion dollar bill and give Congress a little more time to come up with a bill that would actually simulate the economy. There was going to be a bill. Obama is Playing the fear game and a lot of people are scared. It is our money so to take nothing for our state would be crazy. Some other state would probably get it, like CA or more to ACORN.

February 19, 2009 at 3:55 pm

Lois

For the first time in my life, I am scared........this president and his cronies are going to take America down. They hate America and want to see it fall and believe me, it is spiraling out of control. Oh well, you people that keep saying you can't believe it; he told you what he was going to do and you voted for him anyway. Now look at the mess we are in.

February 19, 2009 at 3:49 pm

Bette

The solution, George, is not spending all kinds of money that no one knows anything about. The solution is to let the people fail that should fail. The difference between the Conservatives and the Liberals is that you think the Govt is the only one that can fix this mess, which by the way, is the mess caused by Liberals who insisted that Fannie Mae and Freddie Mac give anyone a loan. This mess is not GW's mess. But the foxes are in charge of their hen house now. If we Conservatives don't watch some Liberal butt, you all will be owned by big government who will take your money and use it however they want. Your guys signed a massive spending bill into law without even reading it. Even the holy one signed it without knowing what was in it. You call that responsible Government. Stop causing the problems Libs and let the Cons protect your butt. all in favor say AYE.

February 19, 2009 at 3:48 pm

Hymie Orlin

This stimulus package should have been be voted on by the "legal voters" of America.We are the ones who will suffer the exorbent expenditures not the people in congress.They continually exemp themselves from the laws and taxes they create.We are now living in the "dictatorship of the prolaterate" like the communist system.The dictators are the democratic congress.

February 19, 2009 at 3:44 pm

Bruce

If a state tries to leave the union most all people on welfare will flee to a union state lowering the money spent dramatically.

February 19, 2009 at 3:35 pm

Geoge D

WOW!! For consertatives to claim they are so patriotic and then get on websites like these and advocate leaving the US in this tough time is crazy. The only people you care about is yourselves. Be a part of the solution people. Up unitl this article I thought the Repub governers were crazy for denying help to taypaying citizens who need help in a rough time. But now I see a way for them to deny the funds and people still get help. Its a solution not ranting. Good article.

February 19, 2009 at 3:35 pm

Charles_Stefan

Yes, we should have a vote state-by-state on whether taxpayers want to accept federal handouts and be told what we can and can't do with our lives. Contrary to some opinions, the financial crisis is not difficult to resolve. All government elected officials have to do is quit spending on every whimp they have and cut taxes. If my income decreases for whatever reason, I have to cut my spending. If I continue to borrow and run up debt then I evenually have to pay. I could lose my home, be forced into bankrupcy, and maybe even get in trouble with the IRS for not being able to pay my taxes, etc. We don't get passes like in-the-right-party politicians do. So, yes, I will be writing my Governor and local legislature representative, today, to request they reject any federal stimulus money offered. My state happens to have a budget surplus, so there is no need to become beholden to Big Brother. I have been opposed the the wrong-headed stimulus idea from the beginning.

February 19, 2009 at 3:34 pm

about this blog

  • Brian Sullivan joined FOX Business Network (FBN) in April 2008 as an anchor. He co-anchors the 10am-12pm ET hours of the FOX Business block. Prior to joining FBN, Sullivan served as an anchor for Bloomberg Television where he hosted the programs Morning Call and In Focus.

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