Diktat by dollar

By now, a lot of States are looking at Washington the way Lando Calrissian looked at Darth Vader after being reminded who held the upper hand:

Lando Calrissian: [angry] That was never a condition of our agreement, nor was giving Han to this bounty hunter!

Darth Vader: Perhaps you think you're being treated unfairly?

Lando Calrissian: [pauses] No.

Darth Vader: Good. It would be unfortunate if I have to leave a garrison here.

Lando Calrissian: [under his breath] This deal is getting worse all the time.

In recent developments, it seems that Uncle Sam, flush with deficit spending, has for the first time become the single biggest source of revenue for State governments. But (and there's always a but) with that red-ink-tainted financial support comes certain... constraints...

As California Gov. Arnold Schwarzenegger tries to plug a budget hole that could swell to more than $21 billion next week, he's quickly discovering a universal truth: Uncle Sam controls the strings.

The Republican governor and state officials find themselves unable to cut spending as deeply as they'd like in some areas because of the potential loss of federal funds. Schwarzenegger wants to save $750 million by rolling back the state's Medi-Cal program, tightening eligibility and reducing benefits.

It won't necessarily be easy.

To get his way, the governor needs special permission from the federal government, which pays the lion's share of the costs. It's an example of the many restrictions that Congress ties to its programs, making it more difficult for states to act on their own when times get tough.

"The federal government wouldn't want to give a state a billion dollars for health care and then find out they spent it on highways," said Brian Riedl, senior federal budget analyst with the Washington-based Heritage Foundation. "They have to provide some rules."

On average, Riedl said, the federal government pays 57 percent of all Medicaid costs. And he noted that states have an option if they don't want to put up with Washington's restrictions.

"Nobody's forcing states to participate in these programs," Riedl said. "If they don't like federal rules, they can simply opt out. If you don't like the rules, don't take the money. What states generally want is all of the money with none of the strings." ((such audacity! It's as if they thought the money was theirs in the first place!! -- Jemison))

Only one problem with that little bone Riedl tossed... the taxpayers of the various States will still be expected to pay into Uncle Sam's coffers, whether or not they tow the line he dictates in order to get some of their own money back.

The States were never intended to be mere administrative units of a one-size-fits-all Empire run from the Potomac River. All the States expected D.C. to do was foster a free trade environment amongst the members of the Union, and to coordinate defense against common external enemies. It was the agent of the States, not their master. Now, cowed by the War Against State Sovereignty, even "The Governator" finds he has to go kiss the Beltway Ring, like a waif from Oliver Twist: "Please, sir, may I have some more?"

The break will come when people decide they're tired of their money going to D.C. and back, minus "overhead," and returned only when they dance the appropriate jig. That day may be coming sooner than we think.