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Refusing "Stimulus" Funds: Then and Now
Liberty and Power at the History News Network ^ | February 28, 2009 | Burton Folsom

Posted on 03/01/2009 8:05:48 AM PST by Captain Kirk

With the flood of spending coming from the stimulus bill, several governors have held firm to principle. They don't want to take the federal money if federal strings are attached. In particular, they are reluctant to take, for example, the new money for Head Start and child care subsidies if it means the states have to pick up the programs when the stimulus money runs out. As Governor Mark Sanford of South Carolina says, "There's no way politically we're going to be able to push people out of the program in two years when the federal money runs out." In a similar manner, states will receive $80 billion in Medicaid funds but these funds run dry in 2011. Will the states have to raise taxes on its citizens for Medicaid after 2011?

This question of whether or not to take federal funds also perplexed some of the governors in the 1930s during the massive federal spending of the Hoover and Roosevelt presidencies. For example, in 1932, under the Emergency Relief and Construction Act, welfare was first made a federal function. Before that, states and private charities provided one on one relief service for hungry and jobless people in their communities. With the promise of federal funds, the governor of Illinois (and the mayor of Chicago) declared urgent and dramatic need. In doing so,they secured over $55 million of this fund--more than New York, California, and Texas combined.

(Excerpt) Read more at hnn.us ...


TOPICS: Constitution/Conservatism; Philosophy; Politics/Elections
KEYWORDS: burtonfolsom; folsom; pages

1 posted on 03/01/2009 8:05:48 AM PST by Captain Kirk
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To: Captain Kirk
... welfare was first made a federal function ...

But, but, but ... none of these programs will grow to the size of WELFARE! ... *snicker*

2 posted on 03/01/2009 8:20:41 AM PST by TexGuy (If it has the slimmest of chances of being considered sarcasm ... IT IS!)
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To: Captain Kirk

The Governor of S. Carolina correctly pointed out that the ‘gift from the Feds’ of millions for Unemployment Compensation was insane. S. Carolina can’t afford the Compensation they’re currently paying for their unemployed full-time workers. The Feds require the money to include BOTH full-time workers and part-time workers unemployment!!! Banning federal gifts never looked so good! The smart states are shutting down their borders to the Pig the Feds have become!


3 posted on 03/01/2009 8:37:33 AM PST by CRBDeuce (here, while the internet is still free of the Fairness Doctrine)
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To: CRBDeuce

Unfortuantely, the pressure is so great to “take the free money” that most will give in. They should take a lesson from Ron Paul who never gives in and keeps getting elected.


4 posted on 03/01/2009 9:56:41 AM PST by Captain Kirk
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To: Captain Kirk

There may be a growing ground swell of congress critters who actually do want to get re-elected and not become a “Stop the pork or your bacon is cooked” statistic.


5 posted on 03/01/2009 11:29:47 AM PST by CRBDeuce (here, while the internet is still free of the Fairness Doctrine)
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