Read more: Local, State, National, Politics, The Latest on the State Stimulus Controversy, Governor Mark Sanford, Federal, Stimulus
State lawmakers might have to go along with Governor Mark Sanford's decision to turn down 700-million dollars in federal money if the state can't use it to pay down debt. The White House has already twice rejected that request. Congressman James Clyburn created what he thought was a loop hole. An amendment allowing the state legislature to pass a resolution to request the money despite Sanford's rejection. But a federal report says that "loop hole" may violate the US constitution's 10th amendment. Now lawmakers are sending two budgets to the governor; one with stimulus money and one without.
Sen. Hugh Leatherman is among several lawmakers not on board with Sanford's decision. Leatherman says without the $700 to $900 million dollars, South carolina's education system will be devastated. The reason lawmakers have already passed a nearly $7 billion state budget, tapping one-billion in stimulus cash.
"The governor could resolve this with one stroke of a pen. All he has to do is request the money and the funds will flow into the education department of this state," says Leatherman.
But, if South Carolina does not accept the federal funds, the money will be redistributed to other states.
Senator Tom Davis says lawmakers don't have a report showing where the stimulus money will go and there could be strings attached requiring South Carolina to change some state laws. Davis says that would be a massive power shift and a big problem.
"It's a very slippery slope you go down when you rely on federal money. Then government dictates how you use the money and what changes need be made to state law," says Davis.
Some say the state should take the aid because residents will have to help repay the country's stimulus debt regardless. The projected interest payment in 10-years is up to $806 billion.
"Well I think that's putting the cart before the horse. I think we take up that issue after we figure out what the $900 million is supposed to go to," says Davis.
Senator Leatherman says a report should be ready by the end of this week so all lawmakers can see who would benefit from the money.
Next week is when the governor's time runs up a decision must come.
