Chuck Schumer has released a statement regarding the ala carte approach Jindal and the rest of the politically motivated GOP governors are taking to the stimulus, and it's not good for the Republicans.
In fact, I'd say it's a Catch-22 where either way they go, they'll have trouble.
In the end, they basically ahve no choice but to take the money.
February 24, 2009
Dear Director Orszag:
In recent days, a small minority of governors, mostly Republicans, have publicly weighed the possibility of foregoing certain emergency provisions provided under the American Economic Recovery and Reinvestment Act signed last week by President Obama. I believe this prospect not only would undercut the stimulative effect of the recovery package, but also is inconsistent with a key provision included in the law passed by Congress. To protect the integrity of the recovery program, I urge the administration to issue implementation guidance clarifying that while any Governor may exercise his or her discretion to accept or reject the federal funds provided in the stimulus, no Governor should have the authority to arbitrarily adopt a select subset of the overall package.
As you know, Section 1607(a) of the economic recovery legislation provides that the Governor of each state must certify a request for stimulus funds before any money can flow. No language in this provision, however, permits the governor to selectively adopt some components of the bill while rejecting others. To allow such picking and choosing would, in effect, empower the governors with a line-item veto authority that President Obama himself did not possess at the time he signed the legislation. It would also undermine the overall success of the bill, as the components most singled out for criticism by these governors are among the most productive measures in terms of stimulating the economy.
For instance, at least two governors have proposed rejecting a program to expand unemployment insurance for laid-off workers. Economists consistently rank unemployment insurance among the most efficient and cost-effective fiscal stimulus measures; by one frequently cited estimate, it provides an economic return of as high as $1.73 for every dollar invested. Thus, by denying this provision for their residents, these governors are not just depriving some of the neediest Americans of relief in a dire economy; they are undermining the overall stimulative impact of the package.
No one would dispute that these governors should be given the choice as to whether to accept the funds or not. But it should not be multiple choice. The composition of the package was rightly dictated by economic considerations; we should not let the implementation of the package be dictated by political considerations.
Sincerely,
Charles E. Schumer
United States Senator
This is good.
No, I mean this is REALLY good.
It seems to me the authors of the stimulus figured the GOP governors would try to pull this sort of ala carte political nonsense, so instead the governors have been headed off at the pass.
It's an all or nothing proposition, and both directions hold political danger. If they take it all, they buck their ow party. If they refuse it all, they buck their constituents' best interests.
I'm thinking Obama, Schumer, Reid, and Pelosi knew what they were doing in this instance.