Smart Politics for GOP Governors to Oppose Stimulus Money
I've had decidedly mixed feelings for weeks now in regards to Obama's stimulus plan, particularly after the "moderate" Senators stripped away nearly $40 billion worth of the funding to cash-strapped states that represented the most tangibly stimulative portion of the legislation. In the end, I probably would have held my nose and voted for it if only in an effort to reduce the level of hardship brought upon by our continued economic freefall rather than any serious expectation of "stimulus". As far as this package fixing our economic migraines anytime soon, it seems very likely to fail.
With that in mind, it poses the opposition party in a sticky situation in statehouses across America who know this thing is likely to fail in its long-term goal yet face such devastating budgetary affairs that rejecting the money would be insane. Specifically, Republican Governors running for President are strongly pondering going so far as to refuse federal stimulus funds allocated to their states. Sarah Palin of Alaska, Bobby Jindal of Louisiana, Haley Barbour of Mississippi, Mark Sanford of South Carolina, and even Rick Perry of Texas (a serious Presidential contender in nobody's mind except perhaps his own) have all indicated they may turn away some or most of the federal stimulus money so they'll have clean hands while campaigning in Iowa in late 2011.
On the surface, this seems like career suicide. Jindal has already rejected a huge chunk in federal unemployment dollars for Louisiana, even though the state is mired in an ugly $2 billion deficit. While the electorates in Louisiana and most of the states where these ideologically "pure" governors govern fancy themselves "conservatives", they are among the most government-dependent states in the country, literally reaping federal outlays as much as 30% higher than what they pay in federal taxes. Just because Louisiana voters who voted 60% McCain last November because they didn't want a black man running the country doesn't mean they want to forfeit unemployment checks they're entitled to after losing their jobs.
But there's more going on here than what Jindal and his ilk would have us believe. It seems that if a majority of the legislatures in these states approve of using the stimulus dollars, the governor's opposition is overridden. Suddenly, there is no longer a downside for Jindal, Palin, and Sanford to oppose the bailout "on principle" so long as they have a quid pro quo with their state's lawmakers to take the money despite their objections. This will set up any of these GOP governors very well for the 2012 GOP primaries, especially if the economy is still in the toilet or the budget deficit is still at or near 10 figures.
With that in mind, it poses the opposition party in a sticky situation in statehouses across America who know this thing is likely to fail in its long-term goal yet face such devastating budgetary affairs that rejecting the money would be insane. Specifically, Republican Governors running for President are strongly pondering going so far as to refuse federal stimulus funds allocated to their states. Sarah Palin of Alaska, Bobby Jindal of Louisiana, Haley Barbour of Mississippi, Mark Sanford of South Carolina, and even Rick Perry of Texas (a serious Presidential contender in nobody's mind except perhaps his own) have all indicated they may turn away some or most of the federal stimulus money so they'll have clean hands while campaigning in Iowa in late 2011.
On the surface, this seems like career suicide. Jindal has already rejected a huge chunk in federal unemployment dollars for Louisiana, even though the state is mired in an ugly $2 billion deficit. While the electorates in Louisiana and most of the states where these ideologically "pure" governors govern fancy themselves "conservatives", they are among the most government-dependent states in the country, literally reaping federal outlays as much as 30% higher than what they pay in federal taxes. Just because Louisiana voters who voted 60% McCain last November because they didn't want a black man running the country doesn't mean they want to forfeit unemployment checks they're entitled to after losing their jobs.
But there's more going on here than what Jindal and his ilk would have us believe. It seems that if a majority of the legislatures in these states approve of using the stimulus dollars, the governor's opposition is overridden. Suddenly, there is no longer a downside for Jindal, Palin, and Sanford to oppose the bailout "on principle" so long as they have a quid pro quo with their state's lawmakers to take the money despite their objections. This will set up any of these GOP governors very well for the 2012 GOP primaries, especially if the economy is still in the toilet or the budget deficit is still at or near 10 figures.
posted by Mark at 4:13 PM
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