Stimulus refusal could backfire

WASHINGTON — Governors usually don’t argue about whether they should take money from the federal government, just how much they should get. Yet some chief executives are divided over President Barack Obama’s economic stimulus plan and whether the billions it offers is always a good deal.

And one lawmaker wants states to have access to funds that others pass up.

Gov. Haley Barbour, R-Miss., has said he is considering turning down millions of dollars in unemployment aid because it would force his state to raise taxes when the stimulus money runs out by putting in place a tax on employers. Louisiana Republican Gov. Bobby Jindal shares that concern about strings attached to stimulus dollars as well as the plan’s overall approach to dealing with the economic crisis.

“I don’t think the best way to do that is for the government to tax and borrow more money,” Jindal said Sunday on “Meet the Press” on NBC. “If all they do is borrow federal money and give it to the states, all we’re really doing is delaying the inevitable. We’re eventually going to have to make these hard choices anyway.”

Governors were in town for the National Governors’ Association meeting.

One congressman announced legislation Sunday to make it easier for states that want the money to get a share of the funds others refuse. Rep. Anthony Weiner, D-N.Y., said his proposal would reallocate funds from the five states — Alaska, Mississippi, Louisiana, South Carolina and Idaho — that say they might reject some portions of their stimulus money.

“If some governors decide to reject the money, 45 other states should be able to use it to create thousands of jobs,” Weiner said. “We have plenty of projects across the country that will put people to work and help achieve long term economic growth and stability.”

Gov. Mark Sanford, R-S.C., has criticized the stimulus plan, as has Alaska Gov. Sarah Palin, the party’s 2008 vice presidential nominee who traveled to Washington last month to press for her state’s share of the money. Palin, busy with her state’s legislative session, did not attend the governors meeting.

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