Resolution in Opposition to Federal Bailouts of State Budgets

Model Bill Info
Bill Title	Resolution in Opposition to Federal Bailouts of State Budgets
Date Introduced	December 4, 2020
Date Finalized	January 8, 2021
Type	Model Resolution
Status	Final
Task Forces	Tax and Fiscal Policy

Resolution in Opposition to Federal Bailouts of State Budgets

WHEREAS, the national debt surpassed $27 trillion in October 2020;

WHEREAS, states – like the federal government – have demonstrated a lack of spending restraint, with state and local government direct general expenditures increasing by nearly 90% over the past 40 years when accounting for inflation and population growth;

WHEREAS, in many states, true spending growth was even higher, due to the growth of spending in special funds;

WHEREAS, in 2018, the 41 states with an income tax spent 55% more per resident than the nine states without an income tax;

WHEREAS, the economy has produced record revenues in recent years while states have continued to accumulate debt and unfunded financial liabilities totaling more than $7 trillion;

WHEREAS, a federal bailout of state budgets would empower some states to continue poor budgeting practices while penalizing taxpayers in states that have practiced fiscal restraint and responsibility;

WHEREAS, every dollar of federal aid received by states leads to higher taxes on state and local taxpayers, on average;

NOW, THEREFORE, BE IT RESOLVED that the (insert legislative chamber) opposes spending federal dollars to bail out state budgets.

BE IT FURTHER RESOLVED that the (insert legislative chamber) urge the United States Congress to reject these spending packages which would increase the federal debt, lead to higher taxes and spending at the state level and cause an additional erosion of federalism.

BE IT FURTHER RESOLVED that instead of requesting federal funds, states should implement priority-based budgeting systems and eliminate wasteful spending.

BE IT FURTHER RESOLVED that during times of emergency such as natural disaster, pandemic, and economic recession, American families and small businesses are forced to make difficult but fiscally responsible budgeting decisions, and state and federal leaders must do the same.

BE IT FURTHER RESOLVED that a copy of this resolution be sent to the President of the United States, the Majority Leader of the United States Senate, the Speaker of the United States House of Representatives, and each member of the (insert state) congressional delegation.