Apr 052021

Did you know that Washington D.C. is not financially viable on it’s own? Even the way the democrats are trying to carve it up will not work fiscally.

Washington DC was never created to become a state in any way shape or form. Were Washington DC to become a State, they would lose a ton of money. The cost would be staggering:

In fact, the most strident opposition to D.C. statehood is likely to come from D.C. residents themselves – once they calculate the real and substantial costs to statehood. D.C. statehood would devastate the District of Columbia’s local budget, eliminate hundreds of millions of dollars in federal aid and wipe out social services, health care, transportation, and social welfare programs.

“Like most things, life in Washington involves tradeoffs: D.C. residents are closer to the levers of federal power than anyone else, they have free access to many of the nation’s foremost cultural treasures, and they have some of the highest average household and individual incomes in the country,” contends Boston Globe columnist Jeff Jacoby (Jacoby, The Constitution says no to DC statehood, 2020).

Even the Left-Leaning Urban Institute confrims: D.C. #1 in Federal Support

On a per capita basis, D.C. residents enjoy federal payments that are orders of magnitude greater than residents of other states. Even the left-leaning Urban Institute is forced to acknowledge that “the District of Columbia’s per capita spending exceeded all states” (Urban Institute, 2020).

• Number #1 in Welfare at $265 per DC resident.
• Number #1 in K-12 spending per capita at $3,466 per DC resident.
• Number #1 in Medicaid spending per capita at $3,669 per DC resident.
• Number #1 in Housing spending per capita at $814 per DC resident.
• Number #1 in Parks spending per capita at $285 per DC resident.
• Number #1 in Public Transit per capita at $2,145 per DC resident. (Urban Institute, January 2017)

There is simply not enough of a tax base in Washington DC to run an effective State Government.

Look at just how much DC depends on the Federal Government:

Net Federal Expenditures Per Capita: D.C. $37,457 vs. -$1,181 for Ohio

For decades, Washington, D.C. has experienced incredible net federal expenditures compared to other states. According to federal budget data for the Fiscal Year 2004, net federal expenditures per capita, after subtracting taxes paid, showed D.C. on top at $37,457. That was nearly 5x greater than second place Alaska at $8,005. Meanwhile, residents of Ohio lost -$1,181 on a per capita basis, with Delaware at a shocking -$7,010 (MacEwan, October 11, 2016).

By 2010, the gap had expanded even further. D.C. residents were receiving $72,292 on a per capita basis, a figure nearly 7x greater than second place Alaska at $11,123. Meanwhile, residents of Ohio remained in the negative on a per capita basis, with Delaware at -$8,019 (MacEwan, October 11, 2016).

2017 Council of State Governments Report: DC Funding at $82,508 Per Capita

A 2017 Council of State Governments report, which analyzed $3.4 trillion in federal spending in five categories: retirement benefits; nonretirement benefits; salaries and wages; grants; and contracts, concluded that D.C. residents received $82,508 per capita, compared to $17,052 for second place Virginia. Residents of Utah, meanwhile, received a meager $7,327 on a per capita basis (Hopkins, 2017).

And for a specific example of the impending fiscal disaster of statehood – look at just the courts:

$274 Million Federal Subsidy of D.C. Courts
D.C.’s courts would be unable to function without federal assistance. “In fiscal year 2016, the federal government paid for the costs of running D.C.’s court system, a total of $274 million” (Lefrak, 2016).

Then – look at this, Washington DC’s bonds are Junk Bonds! Ouch.

Because the District lacks a state-level economic system, it has resorted to junk bonds and accounting gimmicks. In 1995, President Bill Clinton authorized the financial control board, officially called the District of Columbia Financial Responsibility and Management Assistance Authority, to rescue D.C. form its $518 million structural deficit (Delgadillo, Kurzius, & Sadon, 2019).

I can only guess that the democrat leadership are fixated on the Two extra Senators and nothing else. One would hope that responsible members of Congress will stand up and look at the totality of the situation and realize what they would be doing to the residents of Washington D.C. should this hare-brained scheme pass.

Call Susie Lee and encourage her to stay away from this.

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