Friday, March 20, 2009

COLUMBIA, S.C. (AP) - The White House has again rejected South Carolina Gov. Mark Sanford’s bid to use federal stimulus cash to pay down state debt.

White House Budget Director Peter Orszag (OHR’-zag) sent the Republican governor a letter Friday saying the federal cash should be used on education, not to pay off school construction debt.

Sanford had asked to use $700 million in federal stimulus cash to pay down school bonds and other debt.

In all, the state is to get $2.8 billion in federal help. Sanford has said he would reject part of the money if Obama doesn’t give him flexibility in spending it.

State lawmakers have said they’ll use the money if Sanford doesn’t.

Orszag previously rejected Sanford’s request to use the cash on unspecified debt.

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