Obama Lectures Governors: The Stimulus Helped Your States “Whether You Admit It Or Not”

“As the Recovery Act funds that saw through many states over the last two years are phasing out and it is undeniable that the Recovery Act helped every single state represented in this room manage your budgets, whether you admit it or not,” President Obama told a meeting of Governors this morning.

I think the “economic stimulus” spending dumped into the states helped the states…avoid making necessary and tough budget decisions for a period of time. But now the stimulus is running out and what we’re finding is that the stimulus really just exploded the national debt while inflating state budgets and exacerbating this nation’s overall fiscal problems.

[flv]https://s3.amazonaws.com/sayanythingblog/02-11/obamahelpedadmit.flv[/flv]

In March of 2009 I wrote a letter to the Grand Forks Herald opposing North Dakota’s acceptance of federal stimulus dollars. At the time I argued that the stimulus money would only inflate our state budget, and that the politicians would request spending increases to keep that inflation in place once the stimulus money ran out.

Earlier this year Governor Darlymple announced his state budget and said in his budget address to a joint session of the legislature that some $69 million of his proposed spending increases were due to “the additional expense caused by the discontinuation of federal stimulus funding in the upcoming biennium.”

States around the country are facing this issue, trying to make ends meet after federal funds from the stimulus dried up, and none of them are running a budget surplus like North Dakota.

Obama’s stimulus spending made dire state budget issues worse while doing nothing to stimulate economic growth.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

Related posts

  • http://sayanythingblog.com Mountainmouth

    Help the fund those pesky government unions perhaps

  • JustRuss

    Exactly, they used one time money to fund ongoing programs. In the short term “stimulus” kept the states out of hot water, but in the long run it only added to the problem, both at the state and the fed level.

  • http://flamemeister.com flamemeister

    I believe that there was, perhaps for the first time, a tiny glitch in his voice and a flash of sheepishness on his face as this lie embarrassed the room.

  • Jimmypop

    what a dream it would have been if we had said, no.

  • Slackwarerobert

    Helped state avoid REALITY maybe is all it did.
    Help make it much worse for those stupid private sector workers who get to foot the bill.

    BHO, take a guess how much money can be saved by firing all the government workers and only paying them unemployment for 99 weeks. Budget would balance at end of your 1 term lunacy.

Top