COLUMBIA, S.C. – The Obama administration on Monday rejected South Carolina Gov. Mark Sanford's request to use $700 million in federal stimulus cash to pay down state debt. White House Budget Director Peter Orszag said in a letter to the Republican that the federal stimulus law doesn't allow President Barack Obama to make an exception for that cash. Sanford spokesman Joel Sawyer had no immediate response, but the governor has said he would reject part of the stimulus money if Obama wouldn't give him flexibility in spending it.
The $787 billion stimulus legislation sets strict rules for the $53.6 billion being sent to help state budgets, Orszag wrote. It calls for 82 percent of the money to be used for public schools and colleges and 18 percent on public safety and other government services.
"Congress has not authorized the executive branch to waive any of the above statutory requirements," Orszag's one-page letter said.
Last week, Sanford wrote Obama, saying he wanted to use the money in part to pay down future obligations in the state's retirement system.
"If your administration determines that it is unable to grant us this flexibility, we will in turn opt not to pursue these funds," Sanford wrote
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http://news.yahoo.com/s/ap/20090316/ap_on_re_us/sc_stimulus_sanfordI dont know how others feel, but I think Mr Sanford should not accept any stimulus money and then we can all see what the political consequence will be. The Blue States will be happy to spend his share.