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Governor's winter meeting agenda: It's the economy

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[February 21, 2009]  WASHINGTON (AP) -- Congress and the president crafted the stimulus plan as a lifeline, but governors around the country are still debating whether the billions available to stabilize finances and create jobs can safely pull their states from the economy's deeply troubled waters.

Amid budget woes, the deepening recession and conflicting views on the plan, the nation's governors were gathering in Washington on Saturday for their annual winter meeting to discuss ways to mitigate the home foreclosure crisis and help rebuild crumbling roads and bridges.

Leaders from nearly every state and U.S. territory were expected to attend, although a few high-profile governors sent their regrets. Bill Richardson, the New Mexico Democrat, is facing a federal "pay to play" probe, and Alaska's Sarah Palin, the 2008 Republican vice presidential nominee, is busy with her state's legislative session.

While the National Governors Association meeting is billed as a nonpartisan event, politics were expected to play a prominent role.

Among Democrats, all eyes were likely to be on Kansas Gov. Kathleen Sebelius, who has emerged as a leading contender to head the Health and Human Services Department. President Barack Obama's initial nominee, former Senate Majority Leader Tom Daschle, withdrew his name after admitting he had not paid all his taxes since leaving Congress.

On the Republican side, several governors - many with an eye on the 2012 presidential contest - were expected to be in the spotlight after taking prominent and sometimes opposing views of the $787 billion stimulus plan Obama signed into law earlier this week.

South Carolina Gov. Mark Sanford has been among the most outspoken critics of the plan, which would provide billions to states for transit projects, education, Medicaid and tax relief. Sanford has said the plan will only deepen the nation's debt without stimulating the economy the way Obama has promised.

Several other GOP governors have expressed similar misgivings, including Palin and Bobby Jindal of Louisiana, who announced Friday he would reject part of the stimulus plan aimed at expanding state unemployment insurance coverage. Both Jindal and Palin are viewed as likely 2012 contenders, as is Sanford.

No other governor has rejected stimulus funding.

Other high-profile GOP governors - California's Arnold Schwarzenegger and Florida's Charlie Crist, another likely 2012 candidate - have thrown their support behind the plan.

Seizing on the GOP divide, the Democratic Governors Association on Friday called on Republicans to embrace the stimulus plan or reject the money completely.

"A governor's job is to deliver for people - to create good jobs, to keep criminals in prison, to educate our children, to make sure we have decent roads. This recovery package does that," DGA chairman Brian Schweitzer of Montana said in a statement. "It's a little late for Republican governors to get high-minded about accepting federal dollars since this recovery legislation is only a small portion of all the federal money states receive."

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With Democrats in control of both the White House and Congress for the first time since 1994, Republican governors were expected to hold an increasingly visible profile in the months ahead.

Mississippi GOP Gov. Haley Barbour said the success or failure of the party would be measured by GOP governors' performance in office.

"The only way to see if Republican policy is working is in states with Republican governors," Barbour, a former Republican National Committee chairman, said in an interview. "It's very important for the party, but not by governors being politicians. Governors need to be successful."

Republican and Democratic candidates running in this year's gubernatorial contests were expected to be on hand for the meeting as well.

In Virginia, Republican former Attorney General Bob McDonnell hopes to capture the seat being vacated by Democrat Tim Kaine. Three Democrats are competing in the state's June primary, including former state delegate Brian Moran, state Sen. Creigh Deeds and Terry McAuliffe, the former chairman of the Democratic National Committee.

In New Jersey, Democratic Gov. Jon S. Corzine was expected to face a robust GOP challenge, probably from former U.S. Attorney Chris Christie.

The president and first lady Michelle Obama were hosting a black-tie dinner for the group Sunday, and governors were expected to return to the White House Monday for a policy briefing.

Photographers

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On the Net:

National Governors Association: http://www.nga.org/

[Associated Press; By BETH FOUHY]

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Pharmacy

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