Biden’s American Rescue Plan Is Blue State Bailout
By The Heartland Institute | Feb 26, 2021 9:30 AM ET
For years, states like Illinois have been hoping for a federal bailout. Illinois currently carries a mind-boggling $224 billion debt burden.
Well, Illinois lawmakers must be breathing a big sigh of relief, considering it appears more likely than ever that the federal government will pump out $350 billion to states and local governments, under President Biden’s American Rescue Plan.
The bill, which also includes provisions for $1,400 stimulus checks, a $15 federal minimum wage, and all sorts of pork-barrel spending projects, will likely head to Biden’s Oval Office desk by the end of March.
This could not come soon enough for blue states drowning in red ink. Case in point is Illinois.
For decades, Illinois lawmakers have kicked the debt can down the road.
Here is a snapshot of Illinois’ finances: $224 billion total debt burden, $6 billion deficit for the current fiscal year, more than $8 billion in outstanding bills, and hundreds of billions in unfunded future pension liabilities.
Because Illinois cannot print money like the federal government can, Illinois is supposed to have a balanced budget every year. The last time Illinois had a balanced budget: 2001.
Yes, for 20 straight years, Illinois, my home state, has been operating on borrowed money. That is fiscal ineptitude on steroids. However, Illinois is far from the only blue state with money problems due to profligate spending and out-of-control public pension obligations.
The same scenario is playing out throughout the United States, from New York to California.
Such is why many blue-state lawmakers are absolutely giddy about the prospects of a $350 billion federal bailout.
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https://redstate.com/heartlandinstitute/2021/02/26/bidens-american-rescue-plan-is-blue-state-bailout-n332756
