John Hendrickson's commentary on July 3 claims "The objective of the American Rescue Plan is to provide economic relief but it is especially geared toward fiscally reckless states such as Illinois, New York, and California. The fiscal houses of these states are now collapsing, and they need a bailout from the federal government. Even before the pandemic these states were confronted with fiscal calamities because of their poor tax and spend policies."
I have not pursued documentation on Illinois or New York; however, his accusations regarding the California economy are false.
According to CNBC, California’s 2018-19 state budget had $9 billion in surplus.
According to the LA Times, there was a $21.5 billion surplus in the 2019-20 budget.
According to Forbes (2019), “If it were a country, California’s $3.1 trillion economy would be the fifth biggest in the world, ranked between Germany and the United Kingdom. The state represents 15% of the U.S. economy.”
This misrepresentation makes me skeptical of all of Mr. Hendrickson’s opinions.
Jackie Aase, Port Townsend, Washington