Many states are beginning to be dependent upon massive funds flowing from the Obama Stimulus bill and this will heal short term problems, but create long term problems in that the states using stimulus funds to balance state shortfalls, such as their Medicaid programs or educational programs without assurances that stimulus funds will be forthcoming in future years. The Obama administration seems to be looking the other way on this serious problem, and is letting the states put their budgets at risk perhaps saying to the states that the Federal government may be able to assume costs later in a few years down the road with new tax revenues generated by taxing the big corporations and the rich, yet to be identified Federal income sources like Cap and Trade, and new tax sources. Obama has said the results of his Stimulus bill will not be seen for a couple of years, leading states to believe the Federal budgets will be flush with money to continue state bailouts on a more permanent basis. This is suicide for states in out years if they buy into this garbage. Also it seems to fit into Obama’s theory of creating dependency then making demands upon the dependant states to perform according to Federal standards, rather than state standards, as is the case with the Banks and the Auto Companies. If you do a search on Google for states use of Stimulus bill monies, it is amazing how creative states are in expanding their future state mandates with one time stimulus funds. In a couple of years, if the Federal government does not replace these funds with new stimulus funding, the states will be vested in long term unfunded programs, then the pressure will be on states to cut their programs. Is there a purpose in mind by the Obama administration to create this dependency on purpose? I think there is. This does not encourage good management of state resources, and is a very significant problem now being created by the Obama administration. There may be a method to the madness, namely that Obama fueled expansion of dollars into these programs will have many strings attached to move his agenda forward.
Jim the Conservative
http://www.meridianstar.com/editorials/local_story_049003247.html
http://www.rapidcityjournal.com/articles/2009/04/12/news/local/doc49e0079e804a0206370222.txt
http://www.state.sd.us/news/showDoc.aspx?i=10578
http://www.mcclatchydc.com/politics/story/64920.html
http://blogs.thenewstribune.com/politics/2009/02/10/state_budget_writers_hope_u_s_house_stim
Etc, Etc.
