Biden’s Stimulus Wipes Out New York And San Francisco’s Budget Deficits
Among the beneficiaries of the Biden coronavirus relief/stimulus bill after he signs it into law will be the most fiscally irresponsible states at the expense of the most fiscally responsible.
New York, which has seen an exodus of citizens and businesses due to their high taxes and spending (among many other issues) will secure $23.5 billion in funding from the stimulus. The funding is enough to cover all of New York’s budget deficit – with Gov. Cuomo saying in January that $15 billion would be enough to resolve their budget deficit for this year and next.
And they’re not the only ones.
The liberal mecca of San Francisco in particular stands to have two years worth of their budgetary troubles erased at your expense. As the San Francisco Chronicle reported:
The federal stimulus package likely to be signed by President Biden this week will erase the majority of San Francisco’s projected $650 million budget deficit over the next two years, saving City Hall from having to make painful service cuts and layoffs — for now.
While the federal stimulus is a boon for the economy in the short term, it will not solve all of the city’s financial woes. San Francisco’s ultimate recovery heavily depends on how quickly parts of the local economy bounce back, from tourists visiting the city to employees returning to downtown offices.
California as a whole will receive a $42.3 billion bailout. In total, Biden’s stimulus includes $350 billion in aid for the states, designed to replenish lost tax revenue that decreased as a result of the pandemic so states can keep core services alive.
Of the ten states receiving the most stimulus funds, six voted for Biden and four for Trump, though generally speaking more populous states tend to vote Democrat and more lightly populated states Republican. Overall, 60.4% of the funds will go towards states that voted for Biden in November, and the rest to Trump states. Those same states would’ve received 56% of relief dollars if state bailouts were dolled out the same way they were under Trump’s CARES Act.
Author: Matt Palumbo