Bail out the states? Just say no

The financial industry got a cut and the auto industry now wants one, too. So, why are we not surprised that most of the states also want to jump on the bailout wagon careening around the nation's capital?

But to their plaintive plea we say: No way!

Not unless any money received goes into a special pot to address such needs as infrastructure, coupled with employment programs. That would offer a return on investment.

Money should not be moved from the taxpayer-financed bailout pot to the states merely to shore up state spending programs that have proliferated in good years and now must face serious scrutiny in bad ones. Cut or eliminate the programs that cannot be justified in these bleak economic times.

It's a problem facing Washington state, where new revenue projections Wednesday predict a $5 billion shortfall in the amount of money needed to carry existing programs forward in the 2009-11 budget. California has a $28 billion hole in its budget. In New York, more than 160,000 workers are expected to lose their jobs next year, helping push the state's unemployment rate to 6.5 percent.

Yes, times are tough. And states are feeling a direct impact from the national economic slump.

But the reality is that while so many entities are reaching for handouts, Congress has to borrow the money to accommodate them. That, in turn, only adds to the staggering federal debt already ballooned by wars in Iraq and Afghanistan. One of these days, the congressional credit card is going to be maxed out.

In a report released last week, the Center on Budget and Policy Priorities said 41 of the 50 states are facing budget shortfalls this year, next year or both. The report says states are facing "a great fiscal crisis" and their revenue projections are only weakening. Half of them already have cut spending, used financial reserves or raised taxes to balance their budgets, according to the report.

In our state, Gov. Chris Gregoire has ordered an across-the-board cut in spending by agencies under her control and implemented a hiring freeze.

Still, several states have managed to stay off that dreary list: Alaska, Indiana, Montana, Nebraska, North Dakota, South Dakota, Texas, West Virginia and Wyoming.

Congress must slow down what could turn into a Christmas tree loaded with costly ornaments. In fact, the current lame-duck House and Senate don't appear capable of any meaningful legislation, and it's probably a good idea to let a new president and Congress have a crack at the problems.

States should not be part of a bailout effort that merely means throwing more money into a spending pot that first needs a good scrubbing.

Lawmakers from Olympia to Albany, N.Y., have internal resources -- did we mention spending priorities and cuts? -- to deal with their financial problems.

* Members of the Yakima Herald-Republic editorial board are Michael Shepard, Sarah Jenkins, Bill Lee and Karen Troianello.

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