Posted by Jonathan Adler:
White House Backs Sanford on Stimulus:
http://volokh.com/archives/archive_2009_03_29-2009_04_04.shtml#1238675351


   Yesterday, the White House acknowledged that state governors, not
   state legislatures, control the acceptance and disposition of stimulus
   money. The AP [1]reports:

     South Carolina Gov. Mark Sanford has won a key victory in his fight
     to control $700 million in federal stimulus money intended to help
     the state's schools, with the White House acknowledging in a letter
     released Wednesday that state legislatures can't overrule governors
     who don't want the money.

     White House budget chief Peter Orszag said there is no provision in
     the stimulus law for state lawmakers to accept that money without
     approval by the governor.

     Sanford, a Republican, has said he may decline some of the state's
     $2.8 billion in stimulus money because the White House won't let
     him use the cash to pay down his state's debt, including bonds and
     looming retirement system liabilities. South Carolina started the
     fiscal year with $8.1 billion in total bonds outstanding, according
     to the state's comptroller.

   The White House remained critical of Sanford's position, disagreeing
   with his decision to reject a portion of the stimulus funds allocated
   for his state, but acknowledged his authority to reject the funds.

References

   1. 
http://www.cleveland.com/nation/index.ssf/2009/04/white_house_says_governors_can.html

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