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Some Governors Weigh Rejecting Parts of Stimulus Money
Some governors are looking to reject parts of stimulus cash headed to their states because of federal requirements for accepting the money.
This weekend on NBC's "Meet the Press," Louisiana Governor Bobby Jindal said he would reject $100 million in stimulus money for state unemployment funding because of what he perceived to be burdensome federal regulations. "It requires us to make a permanent change in our law," says Jindal.
"The $100 million we turned down was temporary federal dollars that would require us to change our unemployment laws. That would've actually raised taxes on Louisiana businesses," Jindal continued. "We as a state would've been responsible for paying for those benefits after the federal money disappeared."
South Carolina Governor Mark Sanford, another leading voice among Republicans against the Obama administration's stimulus plan, says his office is going through the stimulus "with a fine-toothed comb, looking at what makes sense to reject versus what does not." Originally, Sanford stated he would not accept the stimulus money; however, Sanford has warmed up to the idea so long as the money is spent on beneficial projects.
But Sanford says that what he does with the stimulus money shouldn't be the end of the discussion.
"Regardless of what we do or don't reject, I don't think the debate is by any means over, simply because I think it'll prove to be ineffective, will not work, and we'll be back to the drawing boards in a couple months," Sanford told Politico in a recent interview.
Some governors, like California Governor Arnold Schwarzenegger and Michigan Governor Jennifer Granholm, have said they will take the stimulus money that other governors reject.
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