Palin:NO to State Bailouts

Posted on December 8, 2010


It’s just a matter of time before California, Illinois, New Jersey, New York and other states want the federal government to bail them out. I think IL is $11 Billon on the hole and Ca.’s deficit is $24 billion. The federal government has no money to lend with its own huge deficit.

Below is an excellent article by Sarah Palin on this subject. I take no credit for this piece, I got this story from the blogger below and simply wanted the story to get as much exposure as possible. SHAW


PALIN ARTICLE-Sarah Palin: Hell no to bailing out the states

With pensions becoming an economic problem, three House members of the GOP introduced legislation to prevent bailouts of states. Representatives Dave Nunez, Paul Ryan, and Darrell Issa introduced a bill to deny states the ability to sell tax-exempt bonds unless they report their pension-fund liabilities to the Department of the Treasury:

A bill introduced last week by three prominent House Republicans to deny states and localities the ability to sell tax-exempt bonds—the lifeblood for many governments—unless they report their pension-fund liabilities to the Treasury Department. The federal tax-free status of interest on municipal bonds helps generate demand for the bonds and lowers government borrowing costs.

The goal, the congressmen say, is to get a better handle on funding woes of public pensions, which they say are not always forthcoming about the true extent of their financial exposure.

It is widely chronicled of how many of our sister states are suffering from economic woes because some feckless governors and state legislators are unwilling to tackle against the public sector unions and their enormous pensions that are weighing down fiscally.

Sarah Palin, as she did with quantitative easing, is bringing light to the issue of what may be heading down the road: bailing out states. Not only will this be detrimental to our economy, but we’ll load on more debt and print more money.

On her Facebook post, Sarah Palin tells those governors and legislators in office, put your pants on and get to work. Clean your own house and don’t burden those who actually balance their budgets. She cited her time as governor where she had to make the tough decisions and took on the establishment and union hierarchy to create a fiscally sound state.

Do insolvent states actually believe other states should bail them out? In June 2009, I was invited to introduce Michael Reagan at an event in Anchorage. In my remarks as Governor of Alaska, I warned against President Obama’s debt-ridden stimulus bill and its effect on all our state budgets. I believed that the bill’s benefits would be limited because government would grow exponentially, and I warned that the package was equivalent to a federal bribe with fat strings attached that created new unfunded mandates for state governments. At the time, most state legislatures, including Alaska’s, chose to ignore that warning. I predicted that states like California would soon be coming to the federal government asking for a bailout. After I gave that speech, I remember the mocking I received for predicting California and other big government states would continue to spend recklessly and yet expect others to bail them out. The naysayers in the media went a bit wild in their condemnation of my sounding that alarm.

Well, fast forward to today. We now know that the nearly trillion dollar stimulus package didn’t lead to the job growth promised by President Obama; instead it left already struggling state governments even deeper in debt because now they are on the hook to continue programs and projects that were started by these “free” federal funds. So now, as predicted, folks in Washington and in over-spending state capitols are whispering the dreaded “b-word”: bailouts – for individual states!