Some governors might reject funds

WASHINGTON -- Although President Obama's stimulus package provides about $144 billion directly to state and local governments, a few Republican governors are suggesting they might reject some of the money.

No state has yet refused any of the funding from the $787 billion stimulus package, which Obama signed into law on Tuesday. But Republican governors, including those in South Carolina, Texas, Louisiana and Alaska, have said they are looking closely at the strings attached to the federal funding before they decide what to do with it.

Two of their concerns: The restrictions on some of the money could further crimp state budgets, and programs created or expanded with stimulus funds may have to be cut once the stimulus funds are depleted.

"You get this huge slug of money. It funds programs for a couple of years, and then what?" says South Carolina Gov. Mark Sanford, who heads the Republican Governors Association. "You get it started, you get a constituency established, and then we're supposed to yank the rug out from under people when the federal money runs out?"

Alaska Gov. Sarah Palin, the former GOP vice presidential candidate, said in a statement Monday that state lawmakers should be careful about budgeting stimulus money because "it's not fair to Alaskans to create expectations about programs that wouldn't be sustainable." Texas Gov. Rick Perry told the Houston Chronicle he feared federal money would have "mile-long" strings attached.

Sanford said he and his staff were going "line by line" through the stimulus legislation to determine whether to reject any of the funding. He said it wouldn't be hypocritical to criticize the stimulus but accept the money.

"It's legitimate to say, absolutely, 'I don't like it. I do think it's bad policy. But I'm not going to further encumber the people I represent' " by rejecting the federal money, Sanford said.

White House spokesman Tommy Vietor dismissed criticism of the stimulus, noting that Republican governors in Florida, California, Vermont and Connecticut have said they support the package. Vietor said that's because the stimulus "provides relief to families in their states who are struggling during a difficult time."