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Washington Alert (redesign-largerALG)-1

Kudlow: Bernanke and Ethanol Subsidies Sink Egypt

states bailout «

WSJ: Stimulus Pushers

To treat Washington’s spending addiction, the November elections are the taxpayer’s best chance to stage an intervention. But until then, President Obama and the Democratic Congress are determined to keep pushing strung-out state governments to take one more fix.

Witness Tuesday’s 247-161 largely party-line House vote to approve a Senate bill shovelling another $26.1 billion out to state education and Medicaid programs. The White House has promoted the bill as emergency assistance for strained state budgets. But this unique brand of therapy drives states to spend more, not less. The “assistance” is so expensive that several governors were begging for relief even before Mr. Obama signed it into law.

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The Hill: Mississippi governor blasts state aid bill

By Julian Pecquet

Mississippi Gov. Haley Barbour (R) says he doesn’t want the Democrats’ $26 billion state aid bill. The bill would provide $16 billion in enhanced Medicaid funding and $10 billion in education dollars.

“The bill as passed [by] the Senate will force Mississippi to rewrite its current year (FY11) budget,” Barbour said in a statement. “Preliminary estimates of the Mississippi Department of Finance and Administration show that we will now have to spend between $50-100 million of state funds — funds that must be taken away from public safety, human services, mental health and other state priorities and given to education — in order for an additional $98 million of federal funds to be granted to education. There is no justification for the federal government hijacking state budgets, but that is exactly what Congress has done.”

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The Hill: As House returns for state-aid vote next week, so will the Tea Party activists

By Susan Crabtree

Tea Party activists plan to protest next week’s House vote on a $26 billion state aid package at district offices around the country.

The activists are upset over $10 billion in the package for a fund to stop teacher layoffs.

Fiscal conservatives also are fired up over reports that the American Federation of State, County and Municipal Employees (AFSCME) pushed Pelosi to call the House back for the vote. The union warned Pelosi that states would be forced to lay off thousands of teachers if Congress doesn’t approve the money by the end of August.

Protests are planned in at least a dozen states, and Tea Party activists are set to show up at congressional offices Saturday through Monday, according to conservative activists familiar with their plans.

Demonstrations will occur at the offices of Democrats’ facing tough reelection races, including Reps. Betsy Markey (Colo.), Dina Titus (Nev.), Martin Heinrich (N.M.), Earl Pomeroy (N.D.), John Spratt (S.C.) and Rick Boucher (Va.), according to a planning paper circulating among conservative groups.

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