Stimulus Bill Cuts State Aid

Wendy · Regular Member Posts: 99 Join date: 2009-01-20

I'm going to put this here because we are going to feel the impact of this stupid decision by Congressional "moderates" here in Seekonk.

Part of the cuts in the stimulus bill made by "moderates" like Nelson and Collins was to cut $40 billion for aid to states.
Here is Steve Benen from Washington Monthly:

"When a handful of Senate Republicans slashed over $100 billion from the economic stimulus package, they specifically targeted $40 billion in proposed aid to states. Helping rescue states, Sen. Collins & Co. said, does not stimulate the economy, and as such doesn't belong in the legislation. Democratic leaders reluctantly went along -- they weren't given a choice since Republicans refuse to give the bill an up-or-down vote -- and the $40 billion in aid was eliminated.

It's probably worth taking a moment to consider the consequences of this. States, facing the kind of crisis unseen in generations, are prohibited from running deficits, and are averse to raising taxes, so drastic shortfalls mean drastic cuts -- which in turn make the effects of the recession worse....

Collectively, states are looking at a $47.4-billion gap for 2009, which is likely to get considerably worse in 2010 and 2011. The result, as the LAT noted, will be massive layoffs at the state level and huge cutbacks in services: "Parks will close. Environmental programs will be scaled back. Bus and ferry routes will shut down, possibly sending more drivers onto clogged streets and highways. Schools may go without school nurses, and classes may become more crowded. Sick people who rely on state health programs may instead get sicker."

Cutting state aid from the stimulus bill is a very bad idea. Congress can get the money to states quickly, and give states a much needed boost at exactly the right time. I don't know what Collins & Co. are thinking, but they need to think again."

I voted against Collins when I lived in Maine. I should've fought harder, but I was pregnant/had a newborn during 2 of my years in Maine.

**Dave** · Admin Posts: 317 Join date: 2009-01-18 Age: 98

House Stimulus Bill

This is the latest update that I could find. I have to sift through it but the important questions...was that all of the state aid...what aid is left? I work in Rhode Island and that place is getting scary. I see a lot of "cut this" and "cut that" but no real thought process on what to do with the 10% unemployed and growing to get them back into the workforce.

I am all for belt tightening but if it directly results in more people on unemployment then I am unsure that it could be considered "progress".

Cassandra · New Member Posts: 10 Join date: 2009-01-19

Empires rot from within.