The mayor of Charlotte NC came out in opposition of another federal stimulus package. This comes just as Tucson and Pima County is about to receive $47m. Inside Tucson business did a break down HERE.
First, the spending bill was sold as a way to fund important infrastructure projects. But less than 15% of the bill is directed toward infrastructure building. In fact, the bill spells out that the new spending on infrastructure has to be directed toward “shovel ready” projects.
Big mistake! This means that instead of starting new projects that would create jobs in sectors outside of construction—and therefore benefit future generations—most new projects are only short-term road repavings.
Under the stimulus, there is limited ability to build transit systems or major power generating facilities, upgrade water systems, or undertake significant environmental cleanups. While President Roosevelt built dams and President Eisenhower built an interstate highway system, President Obama’s stimulus fills pot holes.
The second flaw is that mayors and governors across the country are spending massive amounts of stimulus grant money on short-term operating expenses. Yes, we are hiring new police officers, adding summer job youth programs, and buying much needed buses. However, we are spending on already budgeted items, and we are artificially fixing local budget deficits with federal grants that come from deficit spending.
Every accountant knows that this creates long-term financial trouble. We are filling short-term, government jobs that do little to help expand the economy, and we are delaying making difficult cuts. This is the type of financial scheme that got us into our current economic mess.
Our nation cannot afford another stimulus package—particularly one that is basically funding a social wish list and is not investing in our future. Let’s re-examine the first stimulus bill’s spending rules, or better yet redirect its money toward health-care reform. I urge Congress to read the proposed health-care overhaul bill and ask questions without fear of being portrayed as callous to the health of our citizens.
Just because we are experiencing an economic crisis and Congress wants to “do something” does not mean federal action should not be transparent, fiscally responsible, strategic, and sustainable for future generations.
Mr. McCrory is mayor of Charlotte, N.C.
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