As you know, the $800 billion dollar "stimulus" bill purports to shore state finances across the country by bailing out local politicians.  Wouldn't it be nice if we all stopped to ask whether or not they really deserve it?

Minnesota is a case in point.  Uber-liberals there voted last year to raise gas, license, and sales taxes $6.6 billion, all the while failing to stem the flow of red ink from St. Paul, now expected to total nearly 20% of the state budget.  The pols also voted to borrow $1 billion bonding in 2008, but that did little to relieve the crunch as it was reserved for local pork-barrel projects, such as bike and hiking paths, convention centers, ski jumps, polar bear exhibits, and of course mass transit.

Minnesota's biennial budget is scheduled to total nearly $37 billion for the next budget cycle in a state of just five million people (see first graph below).  But had the liberal legislature held state spending increases to inflation and population growth, Minnesota would have  billions in surpluses (see second graph below).  Instead, and this is hard to believe under these current economic circumstances, the politicians in St. Paul are already planning the next round of tax increases.  Of course, most likely it's not much different where you live.

Given federal plans for nationalizing health care and universial education from pre-school to higher ed, not to mention billions for renewable energy subsidies, there simply isn't enough money in Washington to bail out every state capitol. And taxes on just the so-called rich won't begin to cover a proposed $3.6 trillion federal budget for 2010, so grab your wallets gang.

With warm regards,

Jason Lewis