Governors Refusing Governors Refusing StimulusStimulus

Rich WeicheldRich Weicheld

The ProblemThe ProblemRepublican’s who voted against Obama’s $787 Billion Stimulus Package are considering refusing funds for their specific states.

They are not interested in stimulus money that would expand programs and boost the state's costs in future years when the federal dollars disappear.

Accepting unemployment money from the stimulus package would force states to pay benefits to people who wouldn't meet state requirements to receive them.

They do not want to spend first, think later. They would rather spend the money on state debts and other areas. But with unemployment rates sky high and the governors snug in their beds, its ideologies that are waging this war. Its not about the people who really need this money.

Opposing Governors:

Mark SanfordMark Sanford South Carolina GovernorSouth Carolina Governor

He directly controls $700 million of the $3 billion available to South Carolina from the stimulus bill. He announced he would accept that $700 million only if President Barack Obama gives him a waiver to use it toward state debts and liabilities. If Obama turns him down, Sanford said he would reject the money.

"We think it makes the most sense to use this money to dig out of the hole at the state level," said Joel Sawyer, the governor's spokesman. "And frankly, we think by shoring up these debts now, it'll help strengthen the economy in the long run."

Haley BarbourHaley Barbour

Mississippi GovernorMississippi Governor

The state has an 8.7% unemployment rate, though for some counties the rate tops 19%.

"It's puzzling to me why any governor or government would suggest that we are only going to take part of the money and not all of it," said House Majority Leader Tyrone Ellis, a Democrat.

Babour has pledged to refuse roughly $53 million for unemployment benefits out of the $2.8 billion available to his state, arguing the unemployment funds come with too many strings attached.

Bob RileyBob Riley

Alabama GovernorAlabama Governor

Gov. Riley in Alabama has also said he will reject about $100 million dedicated for unemployment benefits, out of $3 billion available to the state. That has prompted one Democratic state senator to introduce legislation to expand jobless benefits and open the way for the funds.

Bobby JindalBobby Jindal

Louisiana GovernorLouisiana GovernorGov. Jindal of Louisiana is under similar pressure as Riley and Barbour. He has indicated he would accept some of the $3.5 billion to $4 billion available to his state, primarily for programs like Medicaid, education and transportation.

But the governor has said he will reject about $98 million to expand unemployment benefits. He does not want the higher taxes in the long run.

Unemployment ProblemUnemployment Problem

The governors object to a requirement in the stimulus law that would force their states to extend unemployment benefits to more low-wage and part-time workers in exchange for some federal funds. They say that could lead to increased state taxes to cover jobless benefits once the stimulus money runs out.

In response, Democrats and some Republicans advocate taking the money to deal with unemployment now and sorting out the consequences later. They also argue that if the stimulus works, unemployment will be lower two years from now, reducing state costs.

A change in eligibility would end up costing Mississippi $16 million annually once the stimulus money runs out, said Dan Turner, Gov. Barbour's press secretary. While the Legislature could repeal the change two years from now, "it would be very difficult to ratchet that program back politically," Mr. Turner said.

What about the people?What about the people?Some state legislators, including Republicans, expressed outrage at the governors’ decision. That means they might try to apply to Washington for the funds if they ultimately rejects them.

Gov. Sanford's outspoken opposition to the stimulus package is what originally sparked U.S. Rep. James Clyburn, a South Carolina Democrat, to add an amendment to the stimulus bill allowing state legislatures to accept the money even if their governors don't.

Even if state legislatures pass resolutions accepting all the stimulus money and altering jobless eligibility, their governors could still veto the bills. Lawmakers then would have to override the governors to receive the funds. And if the states fail to use the money within a 120-day span, it would be returned to the Treasury, so there is still a chance that this money might not be used.

Ed Rendell’s ResponseEd Rendell’s Response

““It’s stunning to me. It’s a terrible call and it is It’s stunning to me. It’s a terrible call and it is based on politics, and you can say that you based on politics, and you can say that you disagree with it but you ought to have your disagree with it but you ought to have your peoples’ welfare first,” peoples’ welfare first,”

They are “not turning away a They are “not turning away a lot of the stimulus money. lot of the stimulus money. Don’t give them credit for Don’t give them credit for being that courageous. They being that courageous. They turned a way a little bit of turned a way a little bit of the stimulus money. There is the stimulus money. There is nobody who has said ‘no’ nobody who has said ‘no’ and by the way the law was and by the way the law was written there is no written there is no legislature–including legislature–including Republican legislators–who Republican legislators–who would let a governor turn would let a governor turn away the money. They are away the money. They are turning away turning away a tad a tad of the of the money.”money.”

In The EndIn The End

Ideology doesn’t put food on the Ideology doesn’t put food on the tabletable

State Democratic Party chairwoman Carol Fowler says their hesitation is driven by their political ambition rather than the best interests of a states that have some of the nation's highest unemployment rates.

They will likely take most of the available money because their states need it so badly.

"Ideology usually takes second place for governors," he said. "And that's going to mean that most governors are going to go ahead and take the money even though they have misgivings about it."

SourcesSources

Huffingtonpost.comHuffingtonpost.com

Wallstreet JournalWallstreet Journal

http://www.huffingtonpost.com/2009/02/18/gop-governors-consider-tu_n_168099.html

http://online.wsj.com/article/SB123681955537903003.html