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Beware of Feds Bearing Gifts - $89 Million of Stimulus Money for WI Unemployment Benefits has Strings Attached
- 2-26-2009
- Categorized in: State Budget
This Wisconsin State Journal editorial echoes my concerns about the strings attached to the federal stimulus money being sent to Wisconsin.
But Congress made the mistake of mixing politics with what should have been temporary emergency assistance…$89 million for Wisconsin is hostage to making changes that could extend unemployment insurance to an estimated 14,000 people now ineligible as well as raise benefits for people with dependents.
When the federal money runs out in three to four years, the added benefits become an unfunded mandate. The bill would fall to the state, which would have to raise unemployment taxes to continue paying, or repeal the changes.
The higher taxes could hold back any economic recovery because they would make it more costly to hire workers.
Governor Doyle and his Democrat colleagues must analyze the consequences before accepting some of this federal money. Doyle has used large amounts of stimulus money to fund and expand ongoing programs, from health care services to unemployment. Our state will face a massive deficit in the next budget as these one-time funding sources end.
