Louisiana Gov. Bobby Jindal, a Republican, cited fiscal responsibility when he turned down about $98 million in unemployment aid that was part of President Barack Obama’s $787 billion federal stimulus package.
With U.S. joblessness at a 25-year high, the rejection by Jindal and five other Republican governors of more than $1.8 billion of the stimulus has drawn protests from Democrats and their allies.
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In Alaska, Gov. Sarah Palin rejected $288 million, including funds for education and social services. She cited concerns about sustaining the spending after federal help ends. South Carolina Gov. Mark Sanford has said he would refuse $700 million in stimulus money. He says the funds will not create jobs and will merely add to the national deficit. Lawmakers in both states, including some
Republicans, say they will try to overrule the governors and accept South Carolina’s full $2.8 billion and Alaska’s $930 million.
Jindal’s move puts Louisiana in the heart of a just-say-no belt — a cluster of Southern states whose Republican governors have declined parts of the recovery package. Along with South Carolina, the other states are Texas, Mississippi and Alabama.
Democrats and their allies are using the issue to lay a foundation for gubernatorial elections and label potential 2012 Obama challengers, such as Jindal, as out of the mainstream.
In South Carolina, the Democratic National Committee is running ads condemning Sanford, 48, for “kowtowing to the Rush Limbaugh-led obstructionist wing” of the Republican Party, invoking the name of the conservative radio talk show host.
In Alaska, Bob Poe, a Democrat running to unseat Palin, accused her of a “narcissistic” decision meant to appeal to her “ultraconservative base.” Palin, 45, was Arizona Sen. John McCain’s running mate in last year’s presidential election.
“We will request federal stimulus funds for capital projects that will create new jobs and expand the economy,” Palin said in a newsrelease March 19. “We won’t be bound by federal strings in exchange for dollars, nor will we dig ourselves a deeper hole in two years when these federal funds are gone.”
In Louisiana and Texas, the United Steelworkers and the AFL-CIO are holding rallies and demanding that legislators override decisions by Jindal, 37, and Texas Gov. Rick Perry, 59. Both Republicans may be 2012 presidential candidates. In declining the funds, Jindal said in a news release Feb. 20 that it would be “irresponsible to enter into an expansion of benefits” that would ultimately raise business taxes.
Employers echo Jindal, saying the money would lead to higher business taxes. In Texas, employers could be forced to pay an estimated $100 million a year when the federal aid expired, said Bill Hammond, president of the Texas Association of Business in Austin.
“Congress wants to further increase states’ dependence on the federal government,” Hammond said in an interview. “It’s like a drug dealer: The dealer gives you your first hit for free to get you hooked, and then you are addicted and are paying the consequences for a long, long time.”
