HOUSE Republican Leader John Boehner

Federal Government Endangers the Independence of States

Bailout culture has gripped Washington, D.C.  From auto bailouts to bank bailouts, it seems that the financial capital of the world has relocated from New York to Washington, D.C. these days.  But with all the talk about bailing out banks and failed auto companies, one area has been largely overlooked: the bailout by the federal government of states and local communities.

The $1 trillion “stimulus” spending bill provides hundreds of billions of dollars to states and localities - money which will allow bureaucrats and politicians in Washington to have an even greater control over local decisions than ever before.

That states are in as dire of a financial situation as the federal government right now is beyond question, as the non-partisan American Legislative Exchange Council notes:

40 states either faced budget deficits for fiscal year 2009, or are projecting deficits for fiscal year 2010…Analysts are projecting cumulative deficits anywhere from $97 billion to $200 billion for the states through fiscal year 2010.

States face a daunting challenge to balance their budgets, but is it a good idea for the federal government to be bailing them out?  The Founders envisioned states as the “laboratory of democracy” independent of the federal government.  The $1 trillion “stimulus” spending program, however, may permanently change the relationship between the federal government and the States.  USA Today reported yesterday that:

In a historic first, Uncle Sam has supplanted sales, property and income taxes as the biggest source of revenue for state and local governments…Federal grants - early stimulus money plus conventional federal aid - soared 15% in the first quarter to a seasonally adjusted annual rate of $437 billion, eclipsing sales taxes, which fell 2%.

Some states rightly are resisting federal intrusion into their decision making.  Several governors, from Mississippi to Alaska, have refused portions of the “stimulus” money.  Governor Bobby Jindal (R-LA) said it best: “So many of these things that are called temporary programs end up being permanent government programs.”  Those permanent programs will be controlled from Washington, D.C. - not by state or local elected officials.

Other states are resisting federal intrusion as well.  Oklahoma’s House of Representatives recently passed a resolution calling for the federal government to “‘cease and desist’ mandates that are beyond the scope of its powers.”  The Republican-led legislature in Florida recently rejected millions in “stimulus” money from the federal government because of the strings attached to it.

Ronald Reagan once quipped that, “The nearest thing to eternal life we’ll ever see on the earth is a government program.”  Unfortunately, the massive “stimulus” bill may not be the last thing out of Washington to upset the constitutional balance our Founding Fathers fought so hard to establish.

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House Republicans Announce “State Solutions” Project to Highlight Common Sense Solutions Outside the Beltway

House Republican Reps. John Boehner (R-OH), Devin Nunes (R-CA) and Mike Rogers (R-MI) today announced a new online initiative known as the GOP State Solutions project.  The initiative, located on the web at http://states.gopleader.gov,  is intended to highlight reforms being implemented by governors and state and local officials outside the Beltway, and to help shine the light of public scrutiny on federal waste and red tape that hinders states, communities, and families.

“In a time of great challenge for the American people, real solutions start in states and communities across America, not with bureaucrats in Washington, D.C.,” said House Republican Leader John Boehner (R-OH).  “Through the State Solutions project, reform-minded Republicans in Congress and in state capitols across America will be working together to present better solutions to the challenges facing families and small businesses.”

Leader Boehner has asked Rep. Rogers to serve as the State Solutions project’s liaison to the nation’s governors, while Rep. Nunes will focus on outreach to state legislators.

The State Solutions webpage includes an Issues section broken into six categories in which reform-minded Republicans in Congress and in state capitols across the nation are offering better solutions than those being advanced in Democratic-controlled Washington, including areas such as job creation, education reform, and American energy reform.  The website features links to statements by leading GOP governors such as Gov. Haley Barbour (MS), Bobby Jindal (LA) and Mark Sanford (SC) discussing the impact of Washington Democrats’ policies on their states, and also highlights proposals put forth by outside-the-Beltway leaders such as Nebraska State Treasurer Shane Osborn, who launched a pioneering state spending transparency website, and the nonpartisan American Legislative Exchange Council (ALEC), which is advocating a 72-hour review rule for congressional spending bills and recently released an analysis of the state impact of the new national energy tax proposed by Washington Democrats.

Visit http://states.gopleader.gov for more information on the State Solutions Initiative.

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