The White House recently rejected a request from South Carolina Gov. Mark Sanford to utilize a portion of the state's allotted funds from the federal stimulus plan to reduce the state debt instead of spending those funds on government services and programs. Congress designated $2.9 billion for South Carolina to use for, among other things, highway improvements, Head Start preschool classes and additional compensation for unemployed workers. Sanford requested a waiver which would have allowed South Carolina to use a quarter of the funds (approximately $700 million) to decrease "our very sizable state debt and contingent liabilities". Sanford's office drafted a second response to modify the state's request, which was also declined by the Obama administration.
In a recent interview with CNN, Sanford voiced his opposition to the overall stimulus package, stating that "Spending money that you don't have, I think, is a horrible idea". Sanford has declared that, if President Obama does not grant the waiver request, he will actually reject the funds altogether. So let me get this straight: You believe that the stimulus plan is a horrible idea and you plan on rejecting the funds unless President Obama will allow you to allocate the funds in how you see you fit and then you will happily accept it. Brilliant logic. The amazing thing about all of this is that the funds could increase to an estimated $8 billion if South Carolina takes full advantage of the funds available for tax cuts, college grants, weather improvements to older houses, etc. Sanford's stance regarding the stimulus package has produced negative responses from Republican leaders of the South Carolina General Assembly. Aides to South Carolina Speaker of the House Bobby Harrell noted that Sanford's proposed fiscal 2009-10 budget does not contain any payments towards the state debt. Harrell remarked that "Since the governor's budget was $254 million higher than existing revenues and he didn't pay down the debt, this is obviously about something other than the state budget". Harrell was certainly referring to Sanford's national political ambitions; with his public criticism of the economic stimulus plan, Sanford has raised his profile among conservatives and increased the speculation for a presidential run in 2012.
At 10.4 percent, South Carolina has the nation's second highest unemployment rate behind Michigan and revenue shortfalls have forced more than $1 billion in state budget cuts this year. However, despite the state's financial issues, Sanford continues to huff and puff, cross his arms and stomp his feet when it comes to his use of the funds designated for South Carolina from the stimulus package. As members of the proverbial Black Belt, Sanford and the governors of Louisiana, Mississippi and South Carolina have expressed opposition to accepting the funds. Therefore, you have to pay attention to Rep. James Clyburn (D-SC) when he points out that those governors lead states where the vast majority of unemployed and impoverished individuals are African American.
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