Tuesday, August 11, 2020

Depends

State aid emerges as major hurdle to reviving COVID-19 talks
New York Gov. Andrew Cuomo (D), the chairman of the National Governors Association (NGA), and Arkansas Gov. Asa Hutchinson (R), the vice chairman, issued a joint statement calling for more help for state and local governments and warned the federal government against placing additional spending burdens on the states.

“NGA has requested $500 billion in unrestricted state aid and NGA continues to urge Congress and the White House to reach a quick resolution to provide immediate assistance to unemployed Americans,” the two governors said. “This resolution should avoid new administrative and fiscal burdens on states. It is essential that our federal partners work together to find common ground to help restore our nation’s health and protect our economy.”

How is revenue sharing divided? 

The Law states the two federal legislative bodies are equal. Take the 500 billion and split it in two.  With one part, deliver 3 billion to each state capital and split the rest, 350 billion among House districts.

Unfair to the big states? Yes, but it is the law.  The big states chose their lot, we went through this during the last recession, we discussed, and voted on, spitting the big states, and California rejected. and the big states chose to remain under represented in the Senate.

Unfortunately, the system is not proportional, but the Law demands it. If Nancy wants to go outside the law than she gets exactly what she has gotten, nothing. We are better off accepting the unfairness than doing nothing at all. Besides, the money will be squandered by the Swamp on federal projects anyway

What does not work are a bunch of politicians trying to pretend the system is proportional. The pretending causes more trouble than we can afford.

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