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January 30, 2003

Why States Can't Be Trusted with Block Grants

Yeah, give states flexibility, put the money in block grants.

Guess what happens?

Well, in the case of money sent to states to take care of joblessness after the Sept 11th attacks, some states such as Texas gave the money to employers, not to unemployed workers.

A study by the National Association of State Workforce Agencies found that 23 states used part of their share of the $8 billion in funding to cut companies' unemployment tax rates.

In Trent Lott's Mississippi, $16 million of the $64.7 million the state received will be used to build a state office building.

Only a few states like Maryland actually used the money to expand benefits-- Maryland raised the maximum weekly benefit to $310, up from $280.

I have an idea-- let's take the $670 billion tax cut Bush is proposing and turn it into a block grant for the states. If individual states feel like giving a big check to dividends holders in their states, fine, but let's let a little federalism decide how the money gets used.

Any takers from the GOP side of the aisle?

Posted by Nathan at January 30, 2003 12:04 PM

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Posted by: JeyZee at March 24, 2006 11:31 AM

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