Governor Barbour to Say No to 50 Million in Stimulus Funds

Governor Haley Barbour says Mississippi might reject some of the stimulus money the federal government is planning to send his way. MPB contributing reporter, Tanya Snyder reports from Washington.

Republicans in Congress and at the state level have a delicate line to walk. They don’t want to encourage big government spending. But if the government’s going to spend big – Republicans want them to spend big in their states. Mississippi stands to get an estimated 2-point-3 billion dollars for roads, bridges, schools, Medicaid, and tax credits. Governor Barbour says the state needs it. He just wishes it had gone a little differently.

BARBOUR:
We need a stimulus bill, just not this one. It’s too big, it’s too expensive, it could cost half as much and do as much good in job creation.

Barbour expects every state will take part in the stimulus program. But he said some states – like Mississippi – will opt out of programs with strings attached. Louisiana Governor Bobby Jindal has announced that his state will refuse stimulus money aimed at shoring up unemployment insurance in the state – and Barbour says he plans to follow suit.

BARBOUR:
It’s about $50 million that we will give up. But we will give that up rather than have to start taxing job creation at a higher rate a couple years from now.

Most of the stimulus money for unemployment requires states to expand eligibility to part-time workers. Barbour worries that once the federal money runs out, Mississippi businesses will inherit the extra burden.

BARBOUR:
Which means we would have to raise the unemployment insurance tax on employers. We want more jobs. When you want more of something you don’t tax it more.

Democratic Governor Ted Strickland of Ohio says it’s fine with him if Mississippi doesn’t take all the money allotted to them.

STRICKLAND:
If there are governors that choose not to access the money I would respectfully ask that they consider designating Ohio as the recipient of those resources.

Barbour and other governors will meet with President Obama Monday. From Capitol News Connection, I’m Tanya Snyder, M-P-B News.