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Economy

‘What constitutes a border crisis?’ Sanctuary cities have found out

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Migrants and migrant bedding inside O’Hare International Airport in Chicago.                 

From The Center Square

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Yeah, you liked them when it wasn’t your problem because you’re not a border state. And then when they show up in Chicago and New York, you’re like ‘What the [expletive] are we going to do with these people?’”

In March 2021, the Los Angeles Times published a story with a headline that asked, “What constitutes a border crisis?”

The story quoted then House Republican Leader Kevin McCarthy as saying, “There is no other way to claim it than a Biden border crisis.”

Then the LA Times asked, “But is it a crisis?”

Just a month later in April 2021, New York City Mayor Bill de Blasio released a statement about his city being a sanctuary city.

“New York City is proud to be a welcoming and inclusive city for immigrants,” de Blasio said at the time.

The debate in the U.S. on migrants took off in April 2022 when Texas Gov. Greg Abbott decided to take a stand against President Joe Biden and what Abbott called an open border policy.

Abbott stated that Biden’s repeal of Title 42 – a pandemic-era policy that allowed the government to quickly expel arriving asylum seekers – had created an “unprecedented surge of illegal aliens” into the country with as many as 18,000 apprehensions a day.

Abbott said that Texas border towns were being overrun by migrants and were overwhelmed. His solution was to bus many of the arriving migrants to sanctuary cities across the U.S.

In August 2022, when the first bus of migrants leaving Texas arrived in New York, Abbott was clear why he had his state paid for the trip. New York had a new mayor by then.

“New York City is the ideal destination for these migrants, who can receive the abundance of city services and housing that Mayor Eric Adams has boasted about within the sanctuary city,” Abbott stated in a news release. “I hope he follows through on his promise of welcoming all migrants with open arms so that our overrun and overwhelmed border towns can find relief.”

And just over a year later, New York Gov. Kathleen Hochul was on CNN in September 2023 pleading with immigrants to “go somewhere else.”

How it has played out was not lost on liberal comedian Bill Maher.

“Could everyone just stop the posturing?” Maher said on a July 2023 podcast with Sharon Osbourne. “Don’t pretend that you love migrants so much and then when we send them to you, you don’t like them. You know? You’re full of [expletive]. And we can see that. Yeah, you liked them when it wasn’t your problem because you’re not a border state. And then when they show up in Chicago and New York, you’re like ‘What the [expletive] are we going to do with these people?’”

New York wasn’t the only destination for Abbott’s buses. He also targeted other sanctuary cities, such as Washington, D.C, Chicago and Denver.

The New York Times published an article in July 2023 that had a headline that asked, “Is Texas’ Busing Responsible for the Migrant Crisis Across Cities?”

On June 14, Abbott’s office stated that it had bused 119,200 migrants to six sanctuary cities since August 2022. That included 45,700 migrants to New York City and 36,900 migrants to Chicago since August 2022. There were also 19,200 migrants bused to Denver since May 2023 and 12,500 migrants bused to Washington D.C. since April 2022.

But Abbott wasn’t alone in busing migrants from the border to locations throughout the country. The Democratic-run city of El Paso also bused migrants north.

Democratic Arizona Gov. Katie Hobbs stated in September 2023 that Arizona was “overwhelmed” by the flow of migrants into her state. Arizona spent $10.5 million transporting 10,247 migrants out of state as of September 2023.

That’s just part of a bigger surge of migrants into the U.S. Since Biden took office in January 2021, about 12 million illegal border crossings have been documented, according to U.S. Customs and Border Protection data and a compilation of “gotaway” data obtained from border agents by The Center Square. Gotaways is the official CBP term to describe those who illegally crossed the border between ports of entry but who were not apprehended. CBP does not publicly release “gotaway” data.

The increase in migrants has hammered the budgets of sanctuary cities.

Washington, D.C. created an Office of Migrant Services with an initial start-up cost of $10 million in 2022. In 2025, the city budgeted $39 million for that office.

Chicago has spent $299 million on migrants since 2022, according to a March 2024 report by the Illinois Policy Institute, and that does not include the hundreds of millions of dollars state taxpayers have paid for costs such as migrant health care.

New York City Mayor Adams said in August 2023 the migrant crisis may cost his city $12 billion over three years.

The city of Denver stated in April 2024 that the increase in migrants has cost it $63 million.

The cost to taxpayers in the state of Texas was $13.4 billion in 2023, according to the Federation For American Immigration Reform. Only California had a higher cost at $30.9 billion.

Ira Mehlman, spokesman for the Federation For American Immigration Reform, said Abbott’s busing strategy has worked.

“His busing policy exposed the hypocrisy of many sanctuary jurisdiction politicians who extolled the virtues of mass immigration regardless of its legality, but are not so happy when they actually have to deal with the real impact of large numbers of migrants,” Mehlman said in an email to The Center Square. “So long as it was someone else’s problem, they were happy to virtue signal and criticize others. Once it became their problem, they demanded that Abbott and others stop sending them migrants. For years, these sanctuary proponents claimed that illegal aliens were a benefit to the country, but are now demanding federal assistance to manage to cover their costs, exposing the fact that illegal immigration imposes huge fiscal costs.”

Managing Editor

Alberta

Alberta government must further restrain spending to stabilize provincial finances

Published on

From the Fraser Institute

By Tegan Hill

This year, program spending will reach a projected $14,334 per Albertan, which is $1,603 more per person (inflation-adjusted) than the Smith government originally planned to spend this year as outlined in the 2022 mid-year budget update.

Despite recording a $4.3 billion surplus last year, Premier Danielle Smith remains committed to a new approach to Alberta finances that relies less heavily on resource revenue, which includes restraining spending levels below the rate of inflation and population growth. That’s a big step forward, but is it enough to stabilize Alberta’s boom and bust rollercoaster?

First, some background.

After nearly a decade and a half of routine budget deficits, Alberta swung to a budget surplus when resource revenue (which includes includes oil and gas royalties) skyrocketed from $3.1 billion in 2020/21 to $16.2 billion in 2021/22. In 2022/23, the government enjoyed the highest level of resource revenue on record and relatively high levels have continued in recent years. Correspondingly, Alberta’s surpluses have continued.

Alberta governments have a habit of increasing spending during times of high resource revenue, such as the province is currently experiencing, to levels that are unsustainable without incurring deficits when resource revenue inevitably declines. That’s why the Smith government’s commitment to spending restraint is an important one.

Unfortunately, however, due to the Smith government’s spending increases in previous years, this restraint won’t go as far in stabilizing provincial finances. Moreover, there are a number of limitations and exceptions to these new spending rules that may impede their effectiveness.

Consider that this year, program spending will reach a projected $14,334 per Albertan, which is $1,603 more per person (inflation-adjusted) than the Smith government originally planned to spend this year as outlined in the 2022 mid-year budget update.

As shown above, program spending (inflation-adjusted) will reach a projected $14,041 per person in 2025/26 and a projected $13,750 per person in 2026/27, which is equivalent to per-person increases of $1,571 and $1,538, respectively, compared to the original plan in 2022.

So while per-person (inflation-adjusted) spending is set to decline, which aligns with the Smith government’s commitment, this restraint is starting from a higher base level due to spending decisions thus far. That means more work needs to be done to rein in spending.

Indeed, for perspective, if the Smith government had simply stuck to its original plan, spending would be closely aligned with stable, more predictable sources of revenue. And ultimately, that’s the way to avoid deficits.

There’s also several limitations and exceptions for the government’s new spending rule. For example, the spending limit applies only to “operating expense,” which does not include longer-term spending, disaster and emergency assistance, spending related to dedicated revenue, or contingencies. As a result of various limits and exceptions, total program spending growth in 2023/24 exceeds inflation and population growth by 1.8 percentage points. Put simply, these limitations and exceptions add to the risk of budget deficits.

Sustainable finances have been impeded by increases in per person spending since 2022. So while the Smith government deserves credit for its commitment to restrain spending moving forward, Alberta’s fiscal challenges aren’t over.

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Economy

Feds spending $1.7 million pushing carbon tax on other countries

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From the Canadian Taxpayers Federation

Author: Ryan Thorpe

The Trudeau government is dumping $1.7 million into a failed bid to get countries around the world to impose carbon taxes, according to access-to-information records obtained by the Canadian Taxpayers Federation.

“All Canadians need to do to know Prime Minister Justin Trudeau’s carbon tax push is an utter failure is look south of the border and see the United States’ refusal to impose their own tax,” said Franco Terrazzano, CTF Federal Director. “If Trudeau can’t even get our biggest trading partner and ally to impose a carbon tax, then why is he wasting money trying to push this unpopular tax around the world?”

The Trudeau government launched the Global Carbon Pricing Challenge at COP26 in 2021.

The program “aims to see 60 per cent of global GHG emissions covered by carbon pricing policies by 2030.” The program website notes “carbon pricing is most effective when more countries adopt it.”

But the results so far are dismal for the government.

Only 24 per cent of global emissions are currently covered by a carbon tax. About 70 per cent of countries do not have a national carbon tax, according to the World Bank.

Three of the four largest emitting countries – the U.S., Russia and India – currently do not have a national carbon tax, according to the World Bank.

“The [climate] community has largely moved into a different framework,” said John Podesta, a long-time Democratic strategist, when asked about whether the Biden administration would impose a carbon tax in the U.S.

Only 12 countries, including Kazakhstan and Chile, have signed onto the Global Carbon Pricing Challenge as “partners,” alongside the European Union. Côte d’Ivoire is listed as the lone “friend” of the program.

There are 195 countries in the world, according to the United Nations.

“This program is a complete failure that’s wasting taxpayers’ money,” Terrazzano said. “The carbon tax makes life in Canada more expensive, forces taxpayers to pay for more bureaucrats to administer it and now we learn we’re also paying for the government to push this failed policy on other countries.”

Records obtained by the CTF show the Trudeau government has spent $811,598 on salaries for bureaucrats, operations and maintenance, and guidance and control for the program since the 2021-22 fiscal year.

The government committed an additional $974,900 towards the creation of an independent secretariat to “support the GCPC.”

The federal government has also spent about $200 million administering the carbon tax in Canada since it was first imposed, according to separate records obtained by the CTF.

Canada’s “GDP is expected to be about $25 billion lower in 2030 due to carbon pricing than it would be otherwise,” according to the Globe and Mail.

“Trudeau should stop wasting money, stop punishing Canadians and scrap the carbon tax,” Terrazzano said.

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