Governors debate how to handle stimulus' billions

WASHINGTON (AP) — Congress and President Barack Obama developed the stimulus plan as a lifeline. Not all governors set it that way and are debating whether the billions available can help their states ride out the economic tidal wave.

Amid budget woes, the deepening recession and conflicting views on the aid plan, state leaders descended on the capital Saturday to discuss the foreclosure crisis and public works projects.

A few high-profile governors were absent. Among them are Bill Richardson, the New Mexico Democrat who was Obama's first choice to head the Commerce Department and now faces a federal "pay to play" probe, and Alaska's Sarah Palin, the 2008 Republican vice presidential nominee, who is busy with her state's legislative session.

Among Democrats, much attention was on Kansas Gov. Kathleen Sebelius, who has emerged as a potential contender as health secretary in Obama's Cabinet. Former Senate Majority Leader Tom Daschle withdrew his nomination after admitting he had not paid all his taxes since leaving Congress.

On the Republican side, some governors with an eye on the 2012 presidential contest have taken prominent and sometimes opposing views of the $787 billion stimulus plan Obama signed into law this week.

South Carolina Gov. Mark Sanford is a chief critic, saying it will deepen the nation's debt without stimulating the economy as Obama has promised. Several others have expressed similar misgivings, including Palin and Bobby Jindal of Louisiana. He said Friday he would reject part of the stimulus plan aimed at expanding state unemployment insurance coverage.

No governor has explicitly rejected stimulus dollars, although some may decide not to accept portions of it.

In an interview, Mississippi Gov. Haley Barbour said he, too, would consider rejecting the expanded unemployment insurance money on the grounds that it would go to people who did not qualify for it.

"I will oppose my state changing our rule to allow people who are not willing and able to work full-time to get unemployment compensation. That will result in tax increases on our employers going forward," Barbour said.

Other high-profile GOP governors — California's Arnold Schwarzenegger and Florida's Charlie Crist, another likely 2012 candidate — have thrown their support behind the stimulus plan.

Seizing on the GOP divide, the Democratic Governors Association is urging Republicans to embrace the plan or reject the money completely.

"A governor's job is to deliver for people — to create good jobs, to keep criminals in prison, to educate our children, to make sure we have decent roads. This recovery package does that," the group's chairman, Brian Schweitzer of Montana, said in a statement. "It's a little late for Republican governors to get high-minded about accepting federal dollars since this recovery legislation is only a small portion of all the federal money states receive."

Democrats control the White House and Congress for the first time since 1994, giving Republican governors the chance to hold an increasingly visible profile in the months ahead.

Barbour, a former chairman of the Republican National Committee, said the success or failure of the party would be measured by GOP governors' performance in office.

"The only way to see if Republican policy is working is in states with Republican governors," Barbour said. "It's very important for the party, but not by governors being politicians. Governors need to be successful."

Candidates in this year's gubernatorial contests were expected to be on hand.

In Virginia, former Attorney General Bob McDonnell, a Republican, hopes to capture the seat being vacated by Democrat Tim Kaine. Three Democrats are competing in the state's June primary: former state delegate Brian Moran, state Sen. Creigh Deeds and Terry McAuliffe, the former chairman of the Democratic National Committee.

In New Jersey, Democratic Gov. Jon S. Corzine was expected to face a robust GOP challenge, probably from former U.S. Attorney Chris Christie.

The president and first lady Michelle Obama were hosting a black-tie dinner for the group Sunday, and governors were expected to return to the White House Monday for a policy briefing.

___

On the Net:

National Governors Association: http://www.nga.org/

32 Views Share Story 0 Comments Report