From CQ Politics:

The stimulus package may be old news in Washington, where Congress and the White House have moved on to other legislative battles. But in the states, political warfare over stimulus funds is just getting under way, and it will be fought in the shadow of the looming 2010 and 2012 election seasons.

South Carolina Gov. Mark Sanford , a Republican, kicked off a fight with the state’s legislature and congressional delegation Tuesday with a proposal to use $700 million in stimulus funds to pay down the state’s debt, rather than spend on local programs. Gov. Haley Barbour ’s rejection of funds for unemployment compensation has sparked a similar battle in Mississippi. Governors who embrace the funds, meanwhile, are under intense pressure from both federal watchdogs and local interests, all looking to make sure funds are meted out in ways that best meet their standards and agendas.

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