South Carolina Governor Mark Sanford requested a waiver in order to use $700 million in order to take care of his state's deficit.  The request for a waiver was rejected by the Obama Administration.  The administration's budget director, Peter Orszag, had this to say:


"During this severe economic downturn, Congress and the president wanted to provide states and localities with emergency funding in order to prevent the layoffs of teachers, police officers and other vital public servants," 


     Admittedly, I'm no expert on the details of the economic stimulus (it seems like not many people are), but this situation makes me think about Rhode Island's budget.  More than $400 million in stimulus funds were used to address deficits for both this year and next year.  David Cicilline is  saying it's wrong, while the Carcieri administration claims it is an appropriate use.  SInce I'm too lazy to read the full text of the stimulus, I will say this: I hope David Cicilline is right.  I know, I'm surprised too, but read on. 

     I strongly believe that more money given to Providence schools will be wasted.  With that said, not giving cities and towns the stimulus money they may be entitled to means the state gets to use the money as a band aid.  Basically, it will turn into the tobacco settlement all over again.  Rather than making tough decisions, and major cuts, the holes will be plugged with temporary funds and the problems will be pushed ahead two years.  We can't wait two years.

     The economy is bad and everyone knows it.  As a result, legislators can actually say no to their supporters' pet projects because they have an "excuse."  Plus, there also seems to be a strong sentiment against raising taxes.  This is the time to make major changes.  Let's hope an infusion of stimulus money doesn't prevent fundamental change from taking hold.


http://www.politico.com/blogs/glennthrush/0309/Orszag_Sanford_cant_sit_on_700m.html