"Hate the bill, love the money" revisited

Several days ago I sounded off on Republican governors who were "threatening" to refuse the money to their states from the Recovery and Reinvestment Act. I was pretty snarky in my denunciation of Republican hypocrisy -- both the congressmen who were trashing the bill while taking credit for their state's benefits and the governors who were posturing against it.

Today on NPR, Montana Governor Brian Schweitzer, who is also Chair of the Democratic Governors Association, made some excellent points in challenge to the governors who are saying they may not accept the money:

1. The issue of states accepting federal money was settled long ago. Money to states for highway construction, health care, and for Medicaid, etc. is a long-established tradition. These governors have already been accepting federal money, and the stimulus money will represent as little as a 5% increase in the federal money those governors have already taken if they have served a term in office.

2. As to resisting the "strings" that may be attached, federal money has always come with requirements for accountability in how it is spent. This is nothing new. Today's tight economic climate and Obama's determination to have transparency may make enforcement more stringent, but the requirements are not new.

3. The Recovery and Reinvestment Act has language written into the bill that allows state legislatures to vote to accept the money, even if the governor doesn't, and it's likely that many will do so.

4. If they don't want to accept certain categories of the money, they don't have to in order to accept the whole package. Just don't spend that portion. It will go back into the overall national fund: "spend it or lose it."

And then there was California's Governor Schwarzenneger on This Week saying to those governors who don't want to take the money: "Send it to me. California will take the money if you don't want it."

My guess is that, in the end, they will all take whatever federal money comes their way. It will be fun to see how they rationalize it with their current posturing.

Ralph