Should the federal government hand over $5 billion to help bail Ohio out of its budget crisis? Some Republicans, most notably Ohio House Speaker Jon Husted, are questioning the idea.
What began Wednesday as a discussion about his decision to move forward with a veterans bonus bill that would be paid for with up to $200 million in rainy day funds, turned into a round of criticism from Husted about government’s willingness to continue borrowing money that must be paid by future taxpayers.
Gov. Ted Strickland wants to pay for the veterans bonuses through bonds that would be paid off over 15 years. He and other Democrats have been critical of Husted’s plan, arguing that the state will need the rainy day fund to help cover historic budget shortfalls in the current and upcoming state budgets.
“These are the same people that just went to Washington and asked them to print $5 billion for the state of Ohio?” Husted, R-Kettering, told reporters. “The federal government is printing money. It is fantasy land right now. Ohio has a savings account. Spending from your savings account is allowable. Maxing out your credit card when you have no means to pay for it is not.”
Asked if President-elect Barack Obama should reject bailout requests from Ohio and other states, Husted said: “I understand the difficulty President-elect Obama has when you’re giving out handouts to big companies…and everybody else, it’s hard to say no. That’s the problem we created by starting to do this from the very beginning. There’s nobody that’s not deserving of a federal bailout by the standards we’ve been using in the federal government. It’s time we embrace reality of what we’re doing in this county to our children and grandchildren.”
Husted said he has not agreed with the bailouts handed out so far under President Bush. “The problem is we haven’t lived within our means when there wasn’t a crisis, and now we’re in a situation where we’re running up the national debt in ways that are going to be detrimental to this country. The bill will come due. If we get a $4 billion or $5 billion bailout, it’s one-time money. Eventually the bill will come due, whether it’s in this budget or the next one.”
If Ohio uses a one-time $5 billion cash infusion from the federal government to fill a revenue shortfall in the 2010-11 state budget, that puts the 2012-13 budget badly out of whack, unless state revenues suddenly see robust growth. Don’t hold your breath on that one.
“The president-elect’s job is hard here. The governor’s job is hard here. I understand why they’re asking for resources,” Husted said. “But I think we have to make sure we’re looking at the other side of the equation. While we’re on a spending spree, we might want to make sure we understand the bill will come due.”
