Stimulus aid fight could head to court
Associated Press
Thursday, May 14, 2009

COLUMBIA ----- The White House wanted to send South Carolina hundreds of millions of dollars to help patch struggling school budgets.

Now the nation's most outspoken anti-bailout governor and irate lawmakers could be headed to state and federal courts to fight over control of $700 million in federal stimulus cash that would decide whether hundreds of teachers lose jobs, whether colleges impose double-digit tuition increases, how many troopers will patrol highways and whether prisons will have to close.

Mr. Sanford went into Wednesday's $5.6 billion budget debate knowing he was beaten. Sanford spokesman Joel Sawyer was hoping the governor's dozen or so allies would just hang tough.

But the outcome showed in Wednesday's final vote: 32-14 to send a budget for the fiscal year that begins July 1 to Mr. Sanford -- one that requires him to seek the federal stimulus money.

South Carolina agencies and programs stand to see as much as $2.8 billion in federal stimulus cash for budgets in the next two fiscal years. Of that money, Mr. Sanford said he controls decisions on requesting $350 million each year, or the $700 million in question. He has called for the money to be used to offset state debt, increasing his national political profile and speculation of a 2012 presidential bid.

The White House twice rejected that idea, saying the money needs to mostly be used in education and to help prevent teachers from losing jobs. Even with $185 million in stimulus cash that's earmarked for schools, the state Education Department expects 1,000 teachers will lose jobs. Without the cash, 500 more teachers would lose their jobs.

As the recession clobbered the state's finances this year, $1 billion was slashed from the budget. With the GOP-dominated Legislature refusing to consider anything hinting of a tax increase, legislators have had few options other than to seek the federal cash.

The budget bill calls for Mr. Sanford to request the money within five days of the budget becoming law, or as early as May 25. Legal action is expected unless Mr. Sanford accepts the Legislature's actions.

School districts around the state were facing a Friday deadline to offer contracts for the next school year.

"We know full well that this is probably going to land in court," Sen. Larry Grooms, R-Bonneau, declared as he railed against plans to use the stimulus cash.

He warned that would tie up the money for months.

With Wednesday's vote, now it will be up to Mr. Sanford and his thin ranks of legislative supporters to muster votes to sustain vetoes next Wednesday. But Mr. Sanford didn't come close to those numbers on most budget votes during the past couple of weeks.

"At this point, we're not going to talk specifics about our veto strategy," Mr. Sawyer said. However, "the governor has been crystal clear about where he is on the stimulus."

Mr. Sanford has for weeks been considering legal action, but Mr. Sawyer said the governor's office would have "no comment on whether we are going to engage in a lawsuit."

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