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.

grf67

If Perry wishes to withdraw from the US, he should go for it, but he should remember what happened the last time that was tried. He will ultimately take the money after he gets his five minutes in the news. Like the other republican governors who are posturing on this issue, he is a political coward who doesn't want to do any of the heavy lifting needed to get us out of the mess left by his mentor.

February 19, 2009 at 3:27 pm

Bette

Understand that you are right about the Senators and Congressmen and women voted either for or against the bill. Understand that those that voted for the bill, voted for a bill without ever reading it. That indicates to me that there was little concern for what was in the bill, if we had enough money for the bill, or what their constituents wanted them to do. The remedy for this is that as their little heads pop up for relection, DON'T. Do not vote for these irresponsible twits that think they know what is best for us. Vote for those that have the Country in their hearts and minds and not the lobbyests, friends in Chicago, Terrorists, Marxists or Socialists. Think before you vote.

February 19, 2009 at 3:24 pm

Derrick Randall

Every state has voted on the stimulus already. Each and every Senator who sits on thier ass voting yay or nay where voted in to vote for the respective states. I might not like how they voted but I know that they were put there by my peers. Period! (Just fustrated)

February 19, 2009 at 3:13 pm

Ian

Please take ohio with you. We may be a battle ground state but our country is falling apart and it is coming from the government.

February 19, 2009 at 3:09 pm

RED STATE SECESSION

At a minimum, all Red States with contiguous boundaries should secede. They should take the name America with them, adopt the Constitution and Bill of Rights. Elect leaders and judges that will take an oath to defend the Constitution and live by that oath. Deport all illegals, socialists, secular progressives, militant atheists and anyone else that has a problem with the Constitution or capitalism to the Blue States. Let our beloved nation be born again, renewed and re-dedicated to the common cause in fear and trembling before God.

February 19, 2009 at 3:06 pm

Pipercub

No, it is not easy. It can be done, but it will never be easy. Texas, like any state in the Union can secede. Goto www.texassecede.com and get all of the info you need.

February 19, 2009 at 3:01 pm

JimFromRichmond

What a delightful situation. First, here are 2 observations; 1- Cudos to Bobby Jindal for his very informed and conservative approach to this and 2- To he - - with the liberal blogs, because (a) they are either out of their minds or (b) Like the Shakesperian character, "me think they doeth protest too loudly". Now, here are my thoughts in this; The conservative states should strongly consider accepting this "bailout" because WOW, this is just like a Civil War skirmish, the battle site was selected by the liberals, as was the time, weather, weaponry and rules of engagement. We conservatives should keep our powder dry and wait for another day. Just like the old and disproven "War on Poverty", I never faulted the recipients for accepting the money, just the voters who elected the liberals and the liberal legislators who established that "dumb skirmish".

February 19, 2009 at 3:00 pm

Tom

Thank you!

February 19, 2009 at 2:59 pm

Jeff Bloodnut

Just get one thing straight people, Obama is going down and soon. This stimulus c r a p is idiotic and only serves the loonatic dems and their far left nuts. All Liberals should be s h o t ! Traitors!!!!

February 19, 2009 at 2:54 pm

Nick diotte

lol your facts are wrong alaska is 3rd. im from Florida i think we should pull out of it.

February 19, 2009 at 2:54 pm

BABS

If Texas would do this, please offer the option to OK, AR, MO, LA, KS to come with you. All 5 of these states have heavy oposition to the new order in their general population. However you may have a hard time with our liberal freak Gov. in MO.

February 19, 2009 at 2:53 pm

David

The states that have done it are: OK, MO, NH, GA, MI, AZ, MT, WA and CA. The states that are planning it are: ID, NV, CO, TX, KS, AR, AL, MN, PA, ME and AK. You can track their progress at www.mrstep.com/politics/az-wa-mo-nh-ok-claiming-s... One of the best written declarations was by WA state and you can read it at http://apps.leg.wa.gov/billinfo/summ...4009#docum...

February 19, 2009 at 2:46 pm

joe_in_danbury

absolutly all states need to pull away from the ussa. I always wondered why we need the fed's all they do is take our hard earned money. Now I know why the south wanted to leave the union they saw this C.R.A.P. coming way back then. Has anyone noticed that every time Obama opens his mouth to talk about the CRISIS the DOW drops which he would shut his mouth for a while so I can regain my retirement. Hey where is my stimulus???? I lost 50% of my retirement money like the rest of us hard working americans.

February 19, 2009 at 2:45 pm

Roland

DARK DARK DARK times are coming!!!!

February 19, 2009 at 2:40 pm

pafaery

Your right, Chase notified me that my fixed rate of 7.99 through WAMU will be changing to a variable rate of about 17.99%. I suggested they go ahead and discontinue my business arrangement with them. What Obama needs to do now is allow us poor people to consolidate all our credit card debt into one loan through maybe the SBA and give us a 4% fixed rate on the loan witht the stip that we no longer use those cards until they are paid in full.

February 19, 2009 at 2:37 pm

Tom

What 8 states have done this?

February 19, 2009 at 2:34 pm

Bill

You're correct in one aspect of your statement. Doing nothing isn't an option, but running around screaming "CRISIS!" while wearing blinders and letting the psycho's run the asylum while you stump the pew isn't the way either. Do SOMETHING, yes. But make sure that what you plan to do isn't going to sink us! He didn't even READ this bill before he signed it !! And the hard truth is... he couldn't care less. Way to go, Big-O.

February 19, 2009 at 2:33 pm

Bette

The constituents can help themselves, Nick. We can pay a little higher property tax in Florida. We can do what we need to do. We don't need big brother. Maybe you have never seen this Country pull out of "crisis" before, but we are an amazing nation of people living, until now, under a free Capital system. Big Brother does not have to take care of us. Hear me well. The people will make the difference not the new regiem. Change is not good in this instance.

February 19, 2009 at 2:28 pm

Jeff

Louisiana ranks #4 in federal money received. They receive $1.78 for every $1.00 they spend. You may need to rethink your position.

February 19, 2009 at 2:28 pm

Jennifer

Alaska needs the money. They get $1.84 in federal money for every dollar they pay into the federal government. They rank 2nd of all the states in amount of aid received. California actually gets $.78 for every $1.00 they spend. Looks like they are funding Alaska and South Carolina. http://www.taxfoundation.org/research/show/266.ht...

February 19, 2009 at 2:26 pm

Linda

I so agree with you. The people of the US should know exactly what is in this big spending bill. I believe the majority of Americans do not want this bill. Where is the change? The change is what the President and his cronies want. Look at the money spent just to sign this bill. The flight to Colorado by the Pres. and another flight by Biden. Where is "living within our means"? I guess that just means the "average middle class" not those that get the big bonuses, etc. Also why was this bill passed without anyone even reading it all?

February 19, 2009 at 2:26 pm

Jennifer

South Carolina receives $1.35 in Federal tax money for every $1.00 they spend. It would benefit the US for South Carolina to withdraw. We would save the $.35 cents/per a dollar. How would South Carolina cut it's budget by 35% to survive? South Carolina always acts so high and mighty like they don't need the federal government when actually they rely on the federal goverments. South Carolina ranks 16 in states collecting the most money from the government: http://www.taxfoundation.org/research/show/266.ht...

February 19, 2009 at 2:25 pm

nick c

Only the most selfish, self-serving political hacks would turn down funds that would help their constituents. And remember, this administration was served up this economic gruel on a platter when it took office. Doing nothing is simply not an option.

February 19, 2009 at 2:23 pm

Bette

David, you are 100% correct. We all need to get on our Governors to declare our Sovereignty and maybe then we can stop this train wreck. Don't know about you, but I am truly scared for my Country

February 19, 2009 at 2:23 pm

REPMaryland

I live in Maryland and I am just tired of all of this give me mentality. If Texas rejects this bill then I am moving there.

February 19, 2009 at 2:22 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.

most popular posts