Governors Debate President's Economic Stimulus Plan

Gathered for the Winter meeting of the National Governors Association, the leaders of the nations' states are pouring over the details of the $787 billion economic stimulus. States are being devastated by the mortgage foreclosures and home values, whose property taxes are the most significant portion of most states' revenues.

While most seem to be relieved to have some cash flowing into the dwindling state coffers, some Republicans are thinking about long-term consequences of taking the funds. Over the weekend state Republicans split over what portions of the economic stimulus to accept.

Opposition to the Federal funds came from three southern governors, Governors Bobby Jindal (R-LA), Haley Barbour (R-MS), and Mark Sanford (R-SC). Each had similar objections to the expansion, to part-time workers, unemployment eligibility standards. Their protests are objections to the temporary funding (two years) of those expanded benefits. Then states would be required to raise employment taxes on employers.

"We want more jobs. You don't get more jobs by putting an extra tax on creating jobs," said Barbour. While Jindal explained his objection as, "It would be like spending a dollar to make a dime" in a statement on Meet the Press this weekend.

Despite the Republican objections, most governors are eager to accept the money. States like California and Michigan, both nearing bankruptcy were eager to express their support.

Governor Arnold Schwarzenegger (R-CA) addressed his comments directly to his South Carolina Republican colleague on ABC's This Week, "Governor Sanford says that he does not want to take the federal stimulus package money. And I want to say to him: I'll take it. I'm more than happy to take his money or any other governor in this country that doesn't want to take this money, I take it, because we in California need it."

Likewise, Governor Jennifer Granholm was more than willing to gobble up her share and more--telling Fox News Sunday, "We'll take it. We'll take your money." Unsurprising, as her state absorbs multiplecrisises --one of the top mortgage foreclosure states, collapse of the big three auto makers, and one of the highest rate of people and business migrations out of the state.

Some Republican Governors like Charlie Crist (R-FL) and Tim Pawlenty (R-MN) are not ideologically aligned with the economic stimulus, but are contending that the problem is so great that the President and the stimulus should be give a chance.

President Obama has urged restraint and judgment from the Governors in deploying the money. And just for good measure he is installing a watchdog. President Obama is expected to appoint an ex-Secret Service agent, EarlDevaney to work with Vice President Joseph Biden in overseeing the Federal funds.