As money from the economic "stimulus" package begins flowing, some Republican governors are rejecting their states' share of $7 billion for enhanced unemployment benefits, saying the strings Congress attached would lead to higher business taxes. To get the money, states must expand unemployment benefits, such as covering part-time workers who lose their jobs."It seems really unreasonable that the federal government would require a change in state law as a condition of accepting these funds,"
Perry spokeswoman Katherine Cesinger said."The governor's main message is Texans who hire Texans drive our state's economic engine, and the last thing we need to do is burden them with higher taxes."
- Led by Republican Governors Association chairman Mark Sanford of South Carolina, a group of governors has rejected the unemployment money or other funding from the $787 billion stimulus package.
- Bobby Jindal of Louisiana, Haley Barbour of Mississippi, and Bob Riley of Alabama also have rejected the unemployment money.
Joel Sawyer, a spokesman for Sanford, said it's politically difficult to take away benefits once they're extended. Increasing the number of people eligible for unemployment would exacerbate the long-term problem the state has meeting its benefit obligations...READ MORE
Obama White House slaps down Sanford on stimulus plan
WASHINGTON — White House Budget Director Peter Orszag on Monday rejected South Carolina Gov. Mark Sanford's request to use up to $700 million of his state's economic stimulus funds to pay down state government debt.
[Heaven forbid anyone reduce their debt.]
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