Jobs plan splits leaders of strapped states

? President Barack Obama’s latest jobs plan calls for $130 billion in aid to state and local governments, providing either a welcome infusion of cash for those struggling with budget gaps, government layoffs and crumbling roads or merely a temporary patch for budget holes that are likely to remain long after the federal money runs out.

The perspective of governors and state lawmakers varies but often follows political affiliation, with Democrats generally praising Obama’s plan and Republicans remaining skeptical.

“It’s a no-brainer: Congress should pass the bill. Now,” said California Gov. Jerry Brown, a Democrat, whose state would receive some $13 billion for construction projects and teaching and public safety jobs at a time when it has the nation’s second highest unemployment rate.

Many Republican lawmakers and governors are less enthusiastic about accepting the federal money, especially if it locks in costs they will have to account for once the aid runs out.

“If we’re given the flexibility to spend it as we see fit and not as they see fit, I could see some benefit,” particularly for long-delayed infrastructure projects, said Missouri House Budget Committee Chairman Ryan Silvey, a Republican. “I’m not a big fan of using one-time money for ongoing expenses. I think that’s what the state should be getting away from, not getting deeper into.”

Obama’s plan has to clear a politically divided Congress, which could scuttle it entirely or enact bits and pieces of it. As envisioned by Obama, state and local governments would receive $50 billion for transportation projects, $35 billion for school, police and fire department payrolls, $30 billion to modernize public schools and community colleges, and $15 billion to refurbish vacant and foreclosed homes or businesses.

It would mark the second, sizable infusion of federal cash to states in less than three years, coming just as they are burning through the last of the billions of dollars they received under the 2009 stimulus act.

In many cases, states used the original stimulus money to fill in for declining tax revenue and lessen or delay spending cuts for public schools, health care programs and other services. But those budget holes remain in many states as high unemployment persists and government tax revenue remains lackluster.

With another round of money, “the federal government may be able to play a critical role in helping states close their budget gaps,” said David Adkins, executive director of the Council of State Governments.

But he said the prospects for receiving the money appear “very, very slim” given the focus on reducing government spending among Republicans in Congress. He said state government leaders are more interested in long-term stable federal funding for transportation projects and education programs.

State budget officials have only estimates of how much they would receive under the Obama proposal, which was announced Thursday to a joint session of Congress. They are waiting to learn exactly how those dollars would be disbursed and what strings, if any, would be attached.

A state-by-state breakdown of the president’s plan shows that Florida could receive more than $7.5 billion for schools, roads and other projects. That money would come into a state with a 10.7 percent unemployment rate and one of the nation’s highest home foreclosure rates. But a spokesman for Florida Gov. Rick Scott left open the possibility that the Florida governor could reject money under Obama’s latest plan, especially if it added to the federal debt.

Kansas Gov. Sam Brownback, a Republican who as a U.S. senator voted against Obama’s 2009 stimulus legislation, did not say whether Kansas would accept federal money under Obama’s latest proposal. But he said the use of one-time revenue in the earlier stimulus program created budget problems for the state when the funding expired.