Posted by Jonathan Adler:
Gov. Sanford on the Stimulus:
http://volokh.com/archives/archive_2009_03_15-2009_03_21.shtml#1237649195
In today's WSJ, South Carolina Governor Mark Sanford [1]explains his
opposition to accepting portions of the federal stimulus funds, and
his desire to use stimulus money to pay down state debt.
Before the stimulus bill passed, I asked for states not to be
bailed out. After it was signed into law, I said that a state
bailout would create more problems than it solved, and that we
shouldn't spend money we don't have. That debate was lost, so I
looked for a reasonable middle ground. I asked the president for
his support in using the $700 million to pay down state debt.
If we're going to spend money we don't have at the federal level,
it becomes all the more important that our state balance sheet is
in good order -- particularly if this is a protracted downturn. But
many people do not realize that the stimulus money runs out in 24
months -- at which point South Carolina will be forced to find a
new source of funding to sustain the new level of spending, or to
make sharp cuts. Sure, I could kick the can down the road; in two
years, I'll be safely out of office. But it would be irresponsible.
References
1. http://online.wsj.com/article/SB123759827524401409.html
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