LibForestPaul
06-08-2009, 04:22 PM
the WSJ
COLUMBIA, S.C. -- South Carolina Gov. Mark Sanford, who defied his own state to reject federal stimulus funding for his struggling government, lost a pivotal decision in federal court and said he now expects to be ordered to request the money.
A federal judge on Monday returned to the state Supreme Court two lawsuits demanding that the governor accept roughly $700 million in federal aid. The state's high court is scheduled to take up the lawsuits on Wednesday.
The Republican governor suggested the state court likely will bow to the wishes of state lawmakers, who have ordered him to take the money. "Here we have a Supreme Court picked by the General Assembly," the governor said. "It looks like we will be bound to spend that money." He said he would abide by the court's ruling.
Mr. Sanford, the only governor to take his opposition to the bailout funding to court, said his best hope had been before a federal judge "because it's federal money and the federal prerogative, we believe, was given to the governor" to decide whether to accept the funds.
FACTUAL/PROCEDURAL BACKGROUND
The ARRA, federal economic stimulus legislation, was enacted by Congress to preserve and create jobs and promote economic recovery; assist those most impacted by the recession; provide investments needed to increase economic efficiency by spurring technological advances in science and health; invest in transportation, environmental protection, and other infrastructure that will provide long-term economic benefits; and stabilize state and local government budgets in order to minimize and avoid reductions in essential services and counterproductive state and local tax increases. ARRA, § 3(a). In the ARRA, as is typical in federal funding legislation, Congress specifies how the federal funds are to be allocated and spent in the respective states.
Section 1607(a) of the ARRA requires the Governor, within forty-five days of the enactment of the ARRA, to certify that: (1) the State will request and use funds provided by the Act; and (2) the funds will be used to create jobs and promote economic development. Because Governor Sanford disapproved of the use of funds as mandated by Congress, he initially indicated he would not make the §1607(a) certification. Yet on the final day for certification, April 3, 2009, Governor Sanford made the §1607(a) certification by letter to the Director of the Office of Management and Budget, including the request “that funds be released to the appropriate state agencies to spend in accordance with guidelines set forth in the ARRA and by federal agencies.” In his April 3, 2009 certification letter, Governor Sanford did express “reservations” and noted his intention to pursue his concerns with the “policy makers within the General Assembly of South Carolina.”
http://www.judicial.state.sc.us/opinions/displayOpinion.cfm?caseNo=26662
COLUMBIA, S.C. -- South Carolina Gov. Mark Sanford, who defied his own state to reject federal stimulus funding for his struggling government, lost a pivotal decision in federal court and said he now expects to be ordered to request the money.
A federal judge on Monday returned to the state Supreme Court two lawsuits demanding that the governor accept roughly $700 million in federal aid. The state's high court is scheduled to take up the lawsuits on Wednesday.
The Republican governor suggested the state court likely will bow to the wishes of state lawmakers, who have ordered him to take the money. "Here we have a Supreme Court picked by the General Assembly," the governor said. "It looks like we will be bound to spend that money." He said he would abide by the court's ruling.
Mr. Sanford, the only governor to take his opposition to the bailout funding to court, said his best hope had been before a federal judge "because it's federal money and the federal prerogative, we believe, was given to the governor" to decide whether to accept the funds.
FACTUAL/PROCEDURAL BACKGROUND
The ARRA, federal economic stimulus legislation, was enacted by Congress to preserve and create jobs and promote economic recovery; assist those most impacted by the recession; provide investments needed to increase economic efficiency by spurring technological advances in science and health; invest in transportation, environmental protection, and other infrastructure that will provide long-term economic benefits; and stabilize state and local government budgets in order to minimize and avoid reductions in essential services and counterproductive state and local tax increases. ARRA, § 3(a). In the ARRA, as is typical in federal funding legislation, Congress specifies how the federal funds are to be allocated and spent in the respective states.
Section 1607(a) of the ARRA requires the Governor, within forty-five days of the enactment of the ARRA, to certify that: (1) the State will request and use funds provided by the Act; and (2) the funds will be used to create jobs and promote economic development. Because Governor Sanford disapproved of the use of funds as mandated by Congress, he initially indicated he would not make the §1607(a) certification. Yet on the final day for certification, April 3, 2009, Governor Sanford made the §1607(a) certification by letter to the Director of the Office of Management and Budget, including the request “that funds be released to the appropriate state agencies to spend in accordance with guidelines set forth in the ARRA and by federal agencies.” In his April 3, 2009 certification letter, Governor Sanford did express “reservations” and noted his intention to pursue his concerns with the “policy makers within the General Assembly of South Carolina.”
http://www.judicial.state.sc.us/opinions/displayOpinion.cfm?caseNo=26662