West Virginia lawmakers have crafted a responsible plan for infusing federal stimulus dollars into the state. West Virginia looks to spend its $1.8 billion of the total $787 billion by supplementing gaps in the budget and jump-start projects within the state, pursuing some stability in a weakened economic climate. State leaders have identified critical areas where easing specific burdens can afford some stability in uncertain times: healthcare, education, transportation, and energy.
Government officials, however, must remember certain principles to ensure spending effectiveness and efficiency. First, the ARRA stimulus money is a onetime infusion of federal dollars. Government expansion cannot be sustained without massive expenditures and deficit growth. Second, the ARRA stipulates that states dedicate funds to “shovel ready” projects to invigorate the economy and preserve jobs immediately. Third, this package cannot create long lasting wealth or jobs, because funding is temporary. Dollars should spare threats of bankruptcy and unemployment, not fund political favors that lead to excessive spending.
Taxpayers must remember that stimulus money is not free, and will require higher taxes than would otherwise be necessary, likely resulting in higher prices for consumer goods. However, if the state of West Virginia continues accordingly, funds can be spent responsibly and effectively. Federal lawmakers coerced the state into accepting stimulus money, but Governor Manchin and his administration can exhibit wise choices when spending sensibly.
- Michael Bush is an associate fellow at the Public Policy Foundation of West Virginia
June 17
For more information on this:
The West Virginia Examiner
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