By Rick Scott
Saturday, December 12, 2020
Democrats have spent the last few months demanding
bailouts for states and local governments. They claim that if you oppose spending
hundreds of billions of taxpayer dollars to bail out states such as New York,
Illinois, and California, then you support laying off teachers, health-care
workers, and first responders.
Guess what? They’re lying. And unfortunately, too many of
my Republican colleagues have bought their lie and are getting ready to cave.
What Democrats really want is for Congress to just send
money to liberal politicians who have already shown they can’t be trusted with
it. If these politicians have budget shortfalls, it’s because they did not
prioritize their struggling constituents in the first place, and instead wasted
money on other things. New York and California are of course free to burn tax
dollars for fun. But they shouldn’t expect Florida and the rest of the country
to pay when the bill comes due.
I’ve argued all along that states have the ability to
moderate the economic harm caused by the COVID pandemic through reasoned,
balanced measures that protect citizens without destroying their economies.
States also have taxing authority and the ability to borrow money if their
fiscal situations get too dire.
The federal government can play a significant role in
boosting the unemployment-insurance program, propping up small businesses to
avoid layoffs, and investing in vaccine research, development, and
distribution. But it shouldn’t write blank checks to poorly managed states.
Why? Well, first of all, we don’t even know how much of
the $1 trillion allocated to states and local governments by the CARES Act has
already been spent, and they won’t tell us. I and Senator Ron Johnson (R.,
Wis.), have written multiple letters to every governor in America asking for a
breakdown of how they’ve spent their states’ CARES Act money. Just ten of them
have responded. Only in Washington does it make sense to consider sending
hundreds of billions of taxpayer dollars to states and local governments that
refuse to tell us how, or even if, they’ve used the $1 trillion we sent them
nine months ago.
Second of all, unemployment data show
that states that have taken steps to responsibly and safely open up their
economies are doing better than states that refuse to accept reality and
science and stick with unnecessarily strict, destructive lockdowns. Thirty
states have halved their unemployment rate since May while real GDP grew 33 percent in
the third quarter, erasing losses from the previous quarter. Of the ten
states with the lowest unemployment rates, nine are led by Republicans, and
none currently have strict COVID lockdowns. Of the ten states with the highest
unemployment rates, eight are run by Democrats, and many have stuck with
economically ruinous lockdown measures. States have the option to get their economies
open and improve their fiscal situations without relying on the federal
government for a bailout. Some are just choosing not to.
Lastly, and most importantly, state revenues are up!
States across the country are seeing a significant increase in revenue — in
some cases, well above projections. As the Wall
Street Journal reported,
California’s revenue for this fiscal year is almost $10 billion above
projections, while New York’s revenue increased more than 4 percent from
September of 2019 to September of 2020.
All this is to say that states do not need bailouts; they want bailouts so they can use the money — intended to address the
fallout from COVID — to plug the long-standing holes in their budgets and
pension systems. It’s as simple as that.
Some of my Republican colleagues on Capitol Hill have
bought the Democratic lie that preventing bailouts for liberal states would
lead to disastrous consequences. They’re getting ready to capitulate and give
hundreds of billions of dollars in taxpayer money to Governors Cuomo and Newsom
and Pritzker, all of whom are refusing to open their states, get kids back in
classrooms, and get their economies on the road to recovery.
Bailing out those who have done so much damage to their states and our country already would be a boondoggle of epic proportions. We must not let it happen.
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