FEDERAL RELIEF BILL NEEDED, WITHIN REASON

California’s $7.6 billion pandemic relief plan and the $1.9 trillion bill to combat COVID-19 backed by President Joe Biden and many House Democrats are different creatures — and not just in size. The state has to balance its budget. The federal government doesn’t. And, wow, do their plans reflect this.

The prudent, focused state measure will provide a $600 rebate to 5.7 million disabled, low-income and undocumented residents after they file their 2020 taxes. It included more than $2 billion in grants and fee waivers to help restaurants, bars and other hardhit small businesses and $400 million in subsidies for child care providers. It also reversed budget cuts to the state court and public university systems made last spring when Newsom warned of big pandemicrelated deficits and suppressed state revenue.

Those warnings were way off. A booming stock market led to massive increases in capital gains taxes for the state, leading to record revenue. Income taxes paid by the very wealthy also surged.

None of the other 49 states did as well on revenue, but 23 other states also made gains or kept level, surprising many economists. The National Association of State Budget Officers says overall revenue only fell 1.6 percent in fiscal year 2020 and that this fiscal year, revenue is ahead of forecasts in 18 states.

Which brings us to the proposed federal relief, which will likely wend from House to Senate to Biden’s desk because of Democratic majorities. The measure includes needed public-health funding that would go toward robust vaccine distribution efforts, and to pandemic testing and contract tracing. It would also use the Defense Production Act to buy and distribute medical supplies; shore up state medical programs; and help laid-off workers get COBRA health coverage, among many provisions.

The House measure also includes hundreds of billions of dollars in relief — providing most Americans with $1,400 stimulus checks; increasing and extending unemployment benefits through Aug. 29; and expanding the child tax credit, child care tax credit and earned income tax credit for one year.

But it would add $350 billion in relief to states on top of the $300 billion in previous aid. Much of this new money could end up in budget reserve funds in the states like California that have not been devastated. Keep in mind that the U.S. government is already on track to run a $2.3 trillion deficit this year, and the national debt is an astronomical $28 trillion. Why should the U.S. give so much to states using the federal credit card at a time when interest on the debt all by itself costs $1 billion a day? And why is the federal government being so generous with its stimulus checks, which scale down faster than in previous rounds but have thresholds that still are too high, even for some moderate Democrats? With COVID-19 case rates falling, vaccination rates climbing and Americans eyeing safe reopenings of schools, businesses and more, stimulus help is clearly needed. But how much?

A federal relief program that’s more focused like California’s COVID-19 response on helping hurting individuals and states makes sense. Many Americans and parts of America still suffer. But an unfocused measure that spends excessively and showers future generations with even more debt is irresponsible. Here’s hoping enough Democratic lawmakers grasp this before Biden grabs his pen to sign the bill.