Perhaps we are seeing a dim light at the end of a tunnel. The Wall Street Journal (subscription only) reported last week that aid to states will be included in a second economic stimulus bill of at least $50 billion:
The general consensus, among people including former Clinton administration officials Lawrence Summers and Alan S. Blinder, was that checks for individuals and additional government spending would help boost the economy, stem job loss and alleviate the pain of higher prices that people are paying for food and gas.
Thankfully Congress seems to finally be coming to terms with what we all have known for a long time now; that the health of the national economy is reliant on the health of the state economies. Speaker Pelosi brings home this point in getting into the finer points of what the bill will entail:
Along with rebates and spending on infrastructure projects, Ms. Pelosi said other possible proposals under consideration are help for states with their share of costs in the Medicaid health program for the poor. Some form of state aid is likely to be included, as Democrats said they are concerned that states, to balance their budgets, will cut programs or increase taxes in ways that would further slow the economy.
Newsflash, this has been happening for the last 5 months as states attempted to balance their budgets. The legislation isn't expected in the House until September, but I am thankful that Senator Reid and the Democratic leadership took the time to make sure the stimulus package would address the right needs. The question now is whether we should be saying "better late than never" or "too little too late."