This column was submitted by Governor Tate Reeves.
The Biden administration and Congress are negotiating a federal coronavirus spending package, and while it has many worthy goals, one thing should be eliminated: bailing out state budgets.
If they pass the billions of dollars in bailout money for state governments, as a governor, I’d get the political benefit of spending that money. It’s never unpopular. The most politically expedient thing for me to do right now would be to keep my head down and my hand out. I have serious concerns, however, about the attitude towards unlimited spending in Washington. I publicly expressed concerns about the previous round of state bailout funds. This time around, it seems even more gratuitous.
I’m currently the governor of Mississippi, but I also hold the Chartered Financial Analyst designation, and I spent the last eight years trying to make budgets balance in our legislature. First and foremost, I’m a numbers guy, and the numbers on this bailout just don’t work.
State governments should have been preparing for a crisis like this before it arrived, rather than spending recklessly. In Mississippi, that’s exactly what we did. We deliberately filled our rainy-day fund to its statutory capacity over my time leading the Mississippi Senate as lieutenant governor. I was attacked for being stingy and not spreading money around to popular programs. Ahead of my 2019 run for governor, those stances cost me politically.
Many of my friends and allies — not to mention my critics — lobbied me to spend on worthy causes. Who cares about a rainy-day fund when times are good? There are raises to give and projects to fund! But our discipline in Mississippi has made all the difference in the last 12 months. We’ve had to make some modest cutbacks due to COVID-19, but nothing like the doomsday scenarios portrayed in many other states.
The fact is, many of these states should have been doing more routine maintenance of their bloated budgets before the crisis came. We’re unafraid of budget cuts here because they happen from time to time. When we have more revenue coming in, we sock some away and spend the rest.
When we don’t, we cut back. That’s what every family and business in America does. But many state governments rely on debt to fund their wish lists on an ongoing basis, and they never see the consequences until it’s too late.
Plenty of states invested in their trust funds and unemployment accounts before the pandemic. It’s not like Mississippi is a unicorn (we’re in the top four, but who’s counting?). The states that decided not to protect their fiscal integrity made a policy decision as well. Now, Congress seems poised to use taxpayer dollars from every state to rescue these profligate states from the consequences once again. This is morally wrong.
It’s not just about budgets and fiscal responsibility. There is a very predictable result of shutting down a state’s economy for months on end, as many “blue” states did. It’s no surprise that there is less economic activity — and tax revenue generated by it — in those states. Indeed, that was their goal.
In Mississippi, our farms and factories never stopped operating. The parts we did slow down, we opened back up as quickly as possible. The result? Mississippi’s revenue is in pretty great shape considering the global pandemic. Total revenue collections for January fiscal year 2021 were 30 percent above the revenue estimate.
In 2020, we attracted 30 percent more capital investment than we saw in 2019. We’ve recovered 103 percent of the jobs we lost at the height of COVID-19’s negative economic effects. We encouraged people to be safe while preserving their rights to shop, dine, work, and live.
State governments that closed their economies and opened their checkbooks are suffering. I have empathy for those governors. We cannot allow the country to continue down the same path, however. What will be the result if we teach states that the only result of reckless spending is a federal bailout? And who will be there holding our federal debt when the federal government finds itself in the same situation?
If federal negotiators are looking to responsibly trim back this behemoth of a federal spending bill, they can look first to the bailout fund. There is no reason states that were unwilling to make unpopular decisions before the pandemic cannot make unpopular decisions now. The bill is due, and prudent states’ taxpayers don’t want to pay for bad choices they didn’t make.
30 comments:
I get his point but don't we already get about $3 back for every $1 we send to Washington. He's teed it up for somebody to embarrass the shot out of him. Do the words "glass house" ring a bell ?
Oh the rich delicious irony from the Governor of an absolute welfare benefactor state to author such criticism.
The most impoverished and poorly educated state in the union.
Governor Reeves, your time would be better spent fixing our Capital City instead trying to pull the splinter out of the California or the Federal Government’s eye.
mississippi is the definition of a welfare state.
hey-just take a billion from the feds and fix the water in jackson...:
Biden can send the money directly to Mississippi cities....so Tate won’t have to worry about it.
Jackson should get 2 billion for new infrastructure.
Put your Money where you Mouth is Governor Reeves!
Decline all federal monies above and beyond our State's Federal tax contribution. Next, dissolve the State Income Tax. Now the final Coup de grâce, fund the State Government solely using that ingenious Sales Tax!
Can't wait to see us return to bare feet and dirt roads!
Make Mississippi Skinny Again!
He still wants disaster money for the cold weather we had a few weeks ago, right? And Katrina money too.
That troll exhibits the same pattern every time.
" There is a very predictable result of shutting down a state’s economy for months on end, as many “blue” states did. It’s no surprise that there is less economic activity — and tax revenue generated by it — in those states."
Aren't outdoor sporting activities still limited to 25% capacity? Is the Governor attempting to rewrite the history of his disastrous executive orders that hamstrung economic activity in retail businesses other than the Krogers/Wal-Marts, etc.? Did he think his former supporters would forget so soon?
This is not Mississippi First. You work on behalf of the people of Mississippi. Get as much as you can.
Save it Tater. Nobody's impressed. Trump and the CPAC boys don't need any help from the mighty welfare state of Mississippi to continue losing.
As if anybody gives a shit that he’s a Chartered Financial Analyst. Whoever wrote this for him wasted their precious time.
Singing to his choir
https://wallethub.com/edu/states-most-least-dependent-on-the-federal-government/2700
Toto, we're not in KS anymore. Wait,
Toto, we've never been in KS. Wait,
Toto, we'll never be in KS. Or,
NJ, DE, IA, UT, IL, MA, MN, WA, CA, VA, NE, HI, CO, CT, FL, TX, WI, OH, NV, NH, RI, NC, MI, ID, OR, NY, GA, VT, AR, SD, MD, OK, MO, PA, TN, ND, ME, LA, AL, WY, AZ, IN, SC, AK, MT, or WV !
Sucks to be KY and NM!
Does he think we are all morons? Chartered Financial Analyst my A**!
One thing Tater excels at is bloviating. Fortunately,Gunn and Hoseman are running the state with a veto-proof majority.
Damn, the sock puppets have come out in force on this one KF. Another winning publishing decision on your part. Cha-ching!!!
and these are the people you want to “take over” Jackson?
de santis wants florida’s share to be more than the 13 billion it’s going to get! he will take MS share if tate turns it away. what a awful decision
So Tate is gonna turn down Mississippi's share so it can go to California? Legislators and lobbyists are salivating over the several billion that Mississippi will be getting from the Biden administration.
lol what a load of horseshit
But, But, But, We have a frontage road to build to Dogwood! We NEED that $$$$
Just more pandering from Tate. What a hypocrite! Very sad!
2:27, just like it is not the Federal Government's job to bail out the broke states, states that have mismanaged their pension funds or the overall budgets to the point that they need the Feds to pay off their generous retirement benefits or their inability to cover the costs of managing in an economic downturn -- it is not the Governor's (or the State's) job to bail out the incompetent leadership of Jackson to bail them out
The fact that Mississippi does receive a large amount of money from the feds (much of it to manage programs that are mandated by the federal government) doesn't change this discussion. If the state did not receive many of these federal funds, they wouldn't provide many of the services. But the fed provides them, the state collects and spends them, AND THE STATE SETS ASIDE RESERVE FUNDS (its Rainy Day Fund, created under Governor Fordice and continued ever since, except during the term of Ronnie Musgrove). That Rainy Day fund, a savings account, along with the Employment Security Fund being whole and properly endowed, has allowed Mississippi to operate without needing the feds to bail it out. Its called budgeting, and that includes during normal times, properly budgeting which includes properly budgeting what the feds send us for certain programs - including theirs.
2:35, IF Biden were to send $2 billion to Jackson - directly to Jackson - we would see maybe a $500 million improvement to the infrastructure. After all the set-asides, mismanagement, consulting fees, etc that would have to be incorporated, the results would diminish tremendously.
And, the feds don't have $2 billion for cities like Jackson. Its not the only metropolitan area in the country that is crying for money, sticking its hand out to Uncle Joe for a little greasing. But the focus of Biden, and Pelosi, is obviously not only mundane things like water or sewer systems for Jackson - just read the "COVID RELIEF" bill and what all favorite things are stuck in there and see where the favored dollars are headed. (And Jim Biden cant get his hands on any dollars that would be headed to jackson, so what would be the purpose?)
5:19 - but you forgot that Tater owns our Supreme Court.
Speaking of bailouts, there’s a big one brewing in Texas. $800 million that was supposed to be returned to consumers has already be given to energy producers when the retailers couldn’t pay. When deregulation and free-market (but not really free-market) theories fail in practices, the big players get bailed out by the taxpayers. I suggest that any bailout of state and local governments will pale in comparison to corporate bailouts. At least the public is getting bailed out with our own money/debt.
9:04
The feds don’t have 2 billion for Jackson? Righhttttt
If Jackson wasted funds in any amount it’d be better than the state killing the city.
Go back to sleep and get your Trump signs ready for 2024 Qanus
While I do admire Tater the facts are pretty clear. Politicians in Washington are hell bent on bringing the country into bankruptcy. Yes that’s what happens when you borrow money to pay for things that aren’t fixable. In reality the National Debt is already past fifty trillion. Anyone with half a brain knows that when your spending more money than you bring in your insolvent. I wonder when the bottom will fall out. Most of our debt, owned by our friends China, Europe and the Saudi’s couldn’t give a rats ass about the U.S. And yet here we are, pissed off that we aren’t getting our share of the empty pie. Crap why not. Live it up folks. Give Shummm Boy his bridge to Canada. Maybe he’ll defect when the shit hits the fan. Same for Pelosi, build that tunnel to nowhere. And while we’re printing tons of worthless paper, throw enough my way for a 2021 Corvette. May as well go down smiling.
@9:03- Why do you care about the “National Debt” when our entire financial system relies on debt with a guaranteed interest payment? Also, our currency is printed with nothing backing it besides that same guaranteed interest “National Debt” on the ledger. Thats right, the guaranteed interest payments of the “National Debt” are the financial instrument that in turn facilities the majority of business, global trade, and even our food production. Basically the entire US Economy.
Complaining about the “National Debt” is absolutely pointless when our entire economy survives on the fractional reserve monetary system under the control of private (and anonymous) global banking families who make up the unelected members of Federal Reserve Bank of the United States.
Folks, it's ok, Tourism will save us. As wlox reported
"Mississippi was the top travel spending market in the U.S. last year, with the Gulf Coast accounting for one-third of all the activity regarding tourism.
That places the Coast as one of the highest performing destinations in our country in 2020."
What 10:38 AM said exactly. The "national debt crisis" is really no crisis at all. In fact, depending on the macroeconomic school of thought you follow, many believe it is beneficial for a government to be run at a deficit because it boosts aggregate demand in the economy. Politicians and the media also seem to try to deliberately confuse most of the population by referencing the U.S.'s GDP when discussing our ability to pay back the national debt, but this is a red herring because (1) the debt is actually paid back with tax dollars and (2) GDP revenue is, for the most part, realized by private entities (who, in turn, structure their operation to avoid as much of their tax obligation as possible). It's no surprise why citizens like @9:03 AM start arguing that the national debt is going to cause the U.S. Government to fail - they don't truly understand how the U.S.'s debt obligations work and don't appreciate that the countries the U.S. borrows from are invested in the U.S. economy in other ways (like depending on us to purchase their GDP), in addition to mistakenly believing that a country can actually file for bankruptcy.
What is interesting is that whenever politicians start talking about the national debt issue, they never mention whether it is actually cheaper for the US to borrow the deficit funds instead of spending cash reserves/surplus dollars. For instance, business owners are well aware that when the interest rates are low, you stand to increase profits by borrowing operating capital and putting your cash reserves to work for you in other ways (such as using cash reserves to expand manufacturing or distribution operations).
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