Bill Text: MI HR0267 | 2019-2020 | 100th Legislature | Introduced
Bill Title: A resolution to memorialize the Congress of the United States to not enact a federal bailout for states.
Spectrum: Partisan Bill (Republican 10-0)
Status: (Introduced - Dead) 2020-05-27 - Referred To Committee On Government Operations [HR0267 Detail]
Download: Michigan-2019-HR0267-Introduced.html
house Resolution No.267
Reps. Hoitenga, Steven Johnson, Hornberger, Reilly, Rendon, Meerman, Crawford, Maddock, Markkanen and Berman offered the following resolution:
Whereas, The COVID-19 Pandemic has led to a significant economic disruption in the United States. In order to limit the spread of the COVID-19, several governors, including Michigan Governor Gretchen Whitmer, have ordered nonessential businesses and schools to close and mandated that people stay at home, except for certain essential activities; and
Whereas, These decisions have directly led to a severe decline in tax revenue in these states. As businesses are closed and employees have been laid off, the projected revenue from income, sales, and other state taxes has fallen off dramatically; and
Whereas, Some states have declared that they will need a bailout from the federal government to replace this lost revenue and avoid cutting services. These governors argue that without unrestricted funding from the federal government the states will need to make cuts to essential services and face an even steeper climb out of the economic downturn caused by the Pandemic; and
Whereas, Congress has already provided significant economic support to the states in previous COVID-19 related stimulus bills. It has properly limited that support to helping states pay for costs related directly to responding to the Pandemic. The Coronavirus Aid, Relief, and Economic Security (CARES) Act included a $150 billion Coronavirus Relief Fund for the states along with additional funding for education, elections security, and other state functions; and
Whereas, States like Michigan have practiced responsible fiscal policy and are prepared to address revenue shortfalls without a federal bailout. They have avoided taking on significant debt, accumulated rainy day funds, and addressed long-term obligations. Some state rainy day funds alone could cover a significant portion of annual expenditures; and
Whereas, Other states have non-existent rainy day funds and have accumulated significant debt through pension obligations and other sources. They have avoided making the tough budgetary decisions, failed to plan property for the inevitable economic downturns, and demonstrated themselves to be poor stewards of taxpayer money; and
Whereas, It should not be incumbent on the federal government and American taxpayers to bail out states for their fiscal irresponsibility. Bailing out states that have failed to budget responsibly will incentivize this type of behavior to continue in the future. By telling states that the federal government will not step in to save them in times of economic stress, there will be no reason for these states to continue to be irresponsible with taxpayer money in the future; now, therefore, be it
Resolved by the House of Representatives, That we memorialize the Congress of the United States to not enact a federal bailout for states; and be it further
Resolved, That copies of this resolution be transmitted to Speaker of the United States House of Representatives, the President of the United States Senate, and the members of the Michigan congressional delegation.
