We all are feeling the cash crunch of shelter-in-place orders. Many are out of work and many businesses are feeling the pain acutely. In response, the federal government has already allocated well over $2 trillion for coronavirus relief but now governors are asking D.C. for at least $500 billion in “unrestricted aid.” This is code for a bailout.
These governors are seeking an unrestricted aid not to address COVID-19 but to get federal tax dollars to cover for years (even decades!) of fiscal recklessness and mismanagement. This would force taxpayers in well-run states like Texas to pick up the tab for states that have failed to fund their pensions and rainy-day funds.
This is unconscionable and unfair. If states can tap federal revenues in times of crisis, it allows them to redistribute their costs from state taxpayers to federal taxpayers and circumvent their balanced budget requirements (which exist in 49 states).
We cannot let state governments use COVID-19 relief to shield their inability to be fiscally responsible. State bailouts would reward fiscal mismanagement and is entirely unfair to states that have managed budgets well over the years. Texas should say no to state bailouts!