Post by the Scribe on Apr 29, 2020 6:10:30 GMT
We should only rescue Billion dollar profit Corporations because they have trouble making their ends meet. But what about the terribly managed federal budget? This means the states do not have to pay into the federal treasury?
Would this include states that take in more federal money than they dish out?
I think that would be a good starting point.
Mnuchin Says he "emptied" it? He didn't say it was spent, so where did he empty it to, and why? We need an accounting with everything that's going on. Too many insiders making money off this National Emergency.
[He emptied it into the coffers of Red Trump voting states that were welfare states to begin with meaning they took more from the Federal government than they gave back. Blue states give more than they get. Stop the bleeding to the Red states and THEN we can talk about WHO is fiscally sound.]
Mnuchin Says No Bailout for States With Badly Managed Budgets
Bloomberg
Saleha Mohsin Bloomberg April 28, 2020
Mnuchin Says No Bailout for States With Badly Managed Budgets
(Bloomberg) -- Treasury Secretary Steven Mnuchin said states that had poorly managed budgets before the Covid-19 outbreak sent their economies reeling should not be rescued by the federal government.
“This isn’t just going to be a federal bailout of the states,” Mnuchin said early Tuesday on CNBC. “States that had specifically large expenses because of the coronavirus, like New York and New Jersey, it was the right thing that the federal government gave them money.”
He said he approves of local governments using coronavirus funding to enforce public safety through law enforcement, but not for revenue lost because of the economic shutdown or “states that were mismanaged” before the pandemic hit.
President Donald Trump on Monday appeared to align himself with Senate Majority Leader Mitch McConnell, who has said Congress shouldn’t debate relief to cash-strapped states until lawmakers reconvene next week.
The Kentucky Republican has suggested states with large pension obligations under union contracts use bankruptcy as a way to manage shortfalls instead of receiving federal aid.
Video: Mnuchin Looking at Lending Program for Oil Companies
Senate Minority Leader Chuck Schumer on Tuesday continued to press for a large package of aid to states and local governments in the next pandemic relief measure, warning of a big potential reduction in public-sector jobs that could further hamper the economy.
“There’s going to be massive layoffs at the state and local level unless we get them money quickly,” Schumer said on MSNBC.
Many Democrats and some Republicans have criticized McConnell’s bankruptcy proposal, arguing such a move would have far-reaching and disastrous financial consequences for the country. Democrats say federal aid for state and local governments must be part of the next round of coronavirus-related stimulus.
Mnuchin also said he has emptied the $150 billion funding from Congress for states and territories established to help cope with a public health emergency crushing local budgets.
(Updates with Schumer comments starting in sixth paragraph)
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2020 Bloomberg L.P.
Would this include states that take in more federal money than they dish out?
I think that would be a good starting point.
Mnuchin Says he "emptied" it? He didn't say it was spent, so where did he empty it to, and why? We need an accounting with everything that's going on. Too many insiders making money off this National Emergency.
[He emptied it into the coffers of Red Trump voting states that were welfare states to begin with meaning they took more from the Federal government than they gave back. Blue states give more than they get. Stop the bleeding to the Red states and THEN we can talk about WHO is fiscally sound.]
Mnuchin Says No Bailout for States With Badly Managed Budgets
Bloomberg
Saleha Mohsin Bloomberg April 28, 2020
Mnuchin Says No Bailout for States With Badly Managed Budgets
(Bloomberg) -- Treasury Secretary Steven Mnuchin said states that had poorly managed budgets before the Covid-19 outbreak sent their economies reeling should not be rescued by the federal government.
“This isn’t just going to be a federal bailout of the states,” Mnuchin said early Tuesday on CNBC. “States that had specifically large expenses because of the coronavirus, like New York and New Jersey, it was the right thing that the federal government gave them money.”
He said he approves of local governments using coronavirus funding to enforce public safety through law enforcement, but not for revenue lost because of the economic shutdown or “states that were mismanaged” before the pandemic hit.
President Donald Trump on Monday appeared to align himself with Senate Majority Leader Mitch McConnell, who has said Congress shouldn’t debate relief to cash-strapped states until lawmakers reconvene next week.
The Kentucky Republican has suggested states with large pension obligations under union contracts use bankruptcy as a way to manage shortfalls instead of receiving federal aid.
Video: Mnuchin Looking at Lending Program for Oil Companies
Senate Minority Leader Chuck Schumer on Tuesday continued to press for a large package of aid to states and local governments in the next pandemic relief measure, warning of a big potential reduction in public-sector jobs that could further hamper the economy.
“There’s going to be massive layoffs at the state and local level unless we get them money quickly,” Schumer said on MSNBC.
Many Democrats and some Republicans have criticized McConnell’s bankruptcy proposal, arguing such a move would have far-reaching and disastrous financial consequences for the country. Democrats say federal aid for state and local governments must be part of the next round of coronavirus-related stimulus.
Mnuchin also said he has emptied the $150 billion funding from Congress for states and territories established to help cope with a public health emergency crushing local budgets.
(Updates with Schumer comments starting in sixth paragraph)
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2020 Bloomberg L.P.
Azdak9 hours ago
The demands placed on state budgets by the corona virus are no different than aid which is handed out due to floods, hurricanes, etc. Under the trump idea, any state (like all the red states) that have been underfunding their emergency management infrastructures while they brag about having “low taxes” should be forced to declare bankruptcy every time a hurricane hits.
States are not asking the federal government to pay their pension benefits. They are asking the government to help replace revenues due to increased unemployment and loss of revenue due to forced closing of businesses—just like any other state. States who have higher costing pension plans or higher levels of social services already charge higher taxes on their residents to pay for them. In Illinois, the pension problems are as much due to agreements made during the time when Illinois was controlled by republicans like Thompson, Edgar, Phillips, and Daniels. The key “reform” that started the downhill spiral in Illinois is actually called “the Edgar Ramp”. It’s typical of trump and the GOP to work tirelessly to divide America and to act only in the interests of the minority of voters who voted for them.
good guy9 hours ago
Nowhere did i read how a "poorly managed state" is determined. I suspect, though, any blue state will be categorized as "poorly run" and red states will be deemed "efficiently run". The gop seems to forget that blue states (like NY and CA) pay more taxes than say, KY or AL, so telling blue states to file bankruptcy means a crippling loss of federal revenue going to poor states.
Bartleby11 hours ago
"...The Kentucky Republican has suggested states with large pension obligations under union contracts use bankruptcy as a way to manage shortfalls instead of receiving federal aid..." -- should we look at Senatorial pensions; should we look at military pensions, too? A 'colonel' in the US military earns over $120,000 per year, why does he need a 'life time pension' rather than a 401k?
Bono12 hours ago
I wish McConnell and Mnuchin were equally concerned about all the tax breaks to ultra millionaires contained in the $2.2 trillion stimulus bill.
ZapB12 hours ago
So yes to States like California with 21 billion dollar surpluses, and no to mismanaged Republican disasters like Kansas? Yes to States like New York, who makes more money for the nation than any other on the Eastern Seaboard, and no to poor midwest States? How have mismanaged, poor Republican States accepted the news that Trump is cutting them out?
The demands placed on state budgets by the corona virus are no different than aid which is handed out due to floods, hurricanes, etc. Under the trump idea, any state (like all the red states) that have been underfunding their emergency management infrastructures while they brag about having “low taxes” should be forced to declare bankruptcy every time a hurricane hits.
States are not asking the federal government to pay their pension benefits. They are asking the government to help replace revenues due to increased unemployment and loss of revenue due to forced closing of businesses—just like any other state. States who have higher costing pension plans or higher levels of social services already charge higher taxes on their residents to pay for them. In Illinois, the pension problems are as much due to agreements made during the time when Illinois was controlled by republicans like Thompson, Edgar, Phillips, and Daniels. The key “reform” that started the downhill spiral in Illinois is actually called “the Edgar Ramp”. It’s typical of trump and the GOP to work tirelessly to divide America and to act only in the interests of the minority of voters who voted for them.
good guy9 hours ago
Nowhere did i read how a "poorly managed state" is determined. I suspect, though, any blue state will be categorized as "poorly run" and red states will be deemed "efficiently run". The gop seems to forget that blue states (like NY and CA) pay more taxes than say, KY or AL, so telling blue states to file bankruptcy means a crippling loss of federal revenue going to poor states.
Bartleby11 hours ago
"...The Kentucky Republican has suggested states with large pension obligations under union contracts use bankruptcy as a way to manage shortfalls instead of receiving federal aid..." -- should we look at Senatorial pensions; should we look at military pensions, too? A 'colonel' in the US military earns over $120,000 per year, why does he need a 'life time pension' rather than a 401k?
Bono12 hours ago
I wish McConnell and Mnuchin were equally concerned about all the tax breaks to ultra millionaires contained in the $2.2 trillion stimulus bill.
ZapB12 hours ago
So yes to States like California with 21 billion dollar surpluses, and no to mismanaged Republican disasters like Kansas? Yes to States like New York, who makes more money for the nation than any other on the Eastern Seaboard, and no to poor midwest States? How have mismanaged, poor Republican States accepted the news that Trump is cutting them out?