We have documented North Carolina’s strong financial condition and have argued against new federal money for months, even as we sought more rational rules on how that first round of federal money to states could be used. As we have talked with fiscal experts in other states, it has been clear that, while North Carolina is in better shape than most, only a handful of states are actually in trouble.

Despite this, the consensus in Washington is that healthy states must take money so Illinois, New York, and other mismanaged states can receive bailouts. Some of you will remember the federal government did something similar to healthy banks when it used TARP to rescue teetering banks in 2009.

The Wall Street Journal cites good work from the Kansas Policy Institute and Reason Foundation in its editorial this morning against the latest proposal to send $350 billion to state and local governments, on top of $128 billion for K-12 schools.