Take the Money or Lose It

From The Palmetto Scoop

Among the numerous rumors swirling around Columbia tonight is a report that President Barack Obama has told Gov. Mark Sanford that if he does not apply for federal stimulus funds, the money will not be available for South Carolina.

And The Palmetto Scoop has now confirmed that Obama has, in fact, sent Sanford a very blunt, personal letter saying just that.

The correspondence reportedly states that roughly $700 million in discretionary stimulus money allocated for South Carolina will be revoked on Friday if Sanford declines to accept the funds and that, by law, no alternative options can be accepted.

The letter is in line with a nonbinding opinion issued Tuesday by Attorney General Henry McMaster that said Sanford — not state lawmakers — have the final say over whether the state accepts federal stimulus money.

“Under the (stimulus act’s) express provisions, only the Governor (or in other cases, other officials pursuant to the particular terms of the Act) may apply to the Secretary of Education (or other federal agencies) for such funds, based upon the federal criteria for eligibility of such funds,” McMaster wrote. “Federal law bestows upon the Governor, as chief executive of the State, the discretion as to whether to apply for these funds.”

Sanford has requested on numerous occasions that the money be used to pay down debt. Obama has repeatedly denied those requests.

But tonight — with the deadline to accept stimulus funding only 72 hours away — marked the first time that Obama has formally told Sanford that he must either take the money or lose it.

Obama’s letter would explain reports that Sanford has approached the General Assembly with an offer to cut a deal. Sanford has allegedly offered to accept the stimulus money if the legislature diverts state funds to pay off debt.