More Fed Money for Profligate States?

Lindsey Burke / August 02, 2010

Many state leaders are lobbying the Senate to extend the Medicaid bailout enacted in the February 2009 stimulus bill. While several attempts by Senate leaders to extend the bailout have failed, it will be brought to the floor again on Monday, this time bundled with additional spending on education.

Talk about throwing good money after bad.

For both Medicaid and education funding, a continued bailout would disproportionately benefit the most irresponsible states and would allow them to delay taking the steps they must to live within their means.

Federal taxpayers fund a large portion of state Medicaid spending, ranging from half the bill for the wealthiest states to 80 percent of the bill for the poorest states. When state leaders complain they need more money, some perspective is in order. (more…)