Editorial: Bush left states out in the cold

Friday, Jan. 31, 2003 | 9:35 a.m.

In a USA Today story Tuesday previewing President Bush's State of the Union address, the newspaper suggested that what Bush wouldn't say later that night would be just as important as what he would say. Indeed, one of those topics Bush didn't mention was the crisis facing state and local governments, whose budget deficits have soared due to the recession. Nevada is one of the hardest hit states and is looking at a $700 million deficit in the coming two years.

The president didn't talk about the states' fiscal plight for a good reason -- he doesn't want to bring attention to the fact that he won't help them. Bush's priorities are elsewhere. For example, he wants to eliminate taxes on stock dividends. Ending that tax, which mainly will benefit the wealthy, will cost $364 billion over 10 years. Instead of pushing that giveaway, which most economists say won't do anything to jump-start the economy, Bush should have asked Congress to send some of that money to the states that are looking at having to either raise taxes or cut vital services to balance their budgets.

One would think that Bush, a former governor, would understand what his former colleagues are going through. At least Senate Minority Leader Tom Daschle, D-S.D., has the right idea. Daschle is proposing that the federal government give states and local governments $40 billion in the next fiscal year. The money would help pay for anti-terrorism efforts, education and skyrocketing Medicaid costs, all areas that are making the budget deficits balloon. Bush may not want to act, but we believe Congress should force his hand and pass Daschle's plan. The states and, more importantly, the American people shouldn't have to pay dearly because a tax cut that principally will benefit the wealthy is more important to the president.