Feds Move Closer to Bailing Out Irresponsible States

In my wrap-up of North Carolina’s 2010-11 state budget, I mentioned that state lawmakers were hopeful for hundreds of millions of additional federal dollars to help NC cover its Medicaid costs.

It looks like the feds are close to granting that wish.

The U.S. Senate voted 61-38 today to break a filibuster blocking a measure that would help states pay for Medicaid and teachers’ salaries.

North Carolina and other states are desperate for the Medicaid money. Under the stimulus law, the federal government has been picking up a bigger share of the cost of the government health insurance for the poor and disabled. States were counting on getting the extra money through July 2011, but it appeared as if the beefed up payments were going to end in December because of shaky Senate support for keeping them up.

….

North Carolina would likely get around $300 million instead of $500 million

So the feds are going to throw billions more to bailout irresponsible states that have created spending obligations with money they don’t have.

This is clearly a bailout for state employees and the powerful teachers unions, along with a vote-buying scheme for those dependent on the government for their health insurance. Every dollar dispensed by the feds increases their power, while reducing the independence of the states receiving the money.

Meanwhile, Gov. Perdue was very gracious to our rulers in DC for their generosity in spending other people’s money.

“I want to thank the U.S. Senate, and especially Sen. Kay Hagan, for voting to move forward with Medicaid funding and money to keep teachers in the classroom,” Perdue said in a statement.

No recognition, of course, from the Guv for the people who will actually be paying for this bailout – the taxpayers.

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