SC high court orders Gov. Sanford to take money

By JIM DAVENPORT – 44 minutes ago

COLUMBIA, S.C. (AP) — South Carolina's Supreme Court ordered Gov. Mark
Sanford on Thursday to take $700 million in federal stimulus money aimed
primarily at struggling schools.

The decision brings a likely end to months of wrangling between the
nation's most vocal anti-bailout governor and legislators who accused
him of playing politics with people's lives.

The Republican governor had refused to take the money designated for the
state over the next two years, even after legislators passed a budget
requiring him to do so. He became the first governor to defend in court
his desire to reject money from Washington.

Educators had predicted hundreds of teachers would lose jobs and
colleges would see steep tuition increases without the money, though
sharp budget cuts will still take a toll.

The state Supreme Court's ruling came a day after arguments in two
lawsuits filed by students and school administrators. Sanford had tried
to get those cases merged in federal court with his lawsuit, which he
filed moments after legislators overrode his budget veto. But he lost
that battle Monday when a federal judge refused to take those cases.

Sanford anticipated Thursday's ruling. On Monday, the governor said he
would not appeal the Supreme Court's decision and, if he lost, would
drop his federal case.

Sanford has refused to request the $700 million — the portion of the
$2.8 billion bound for the state that he says he controls — unless
legislators agreed to offset state debt by an equal amount. The White
House twice rejected that idea, noting the money must be used to help
education and avoid job losses.

South Carolina, which had the nation's third-highest jobless rate in
April — hitting a state record high of 11.5 percent — cut more than $1
billion from its $7 billion spending plan for 2008-09 as tax revenues
slumped in the recession.

The stimulus fight has raised the national profile of Sanford, the
chairman of the Republican Governors Association, and prompted talk of a
2012 GOP presidential bid.

Sanford's refusal has raise the ire of U.S. Rep. Jim Clyburn, the No. 3
House Democrat, who accused the governor of being a foe of public
education. Amid budget cuts and uncertainty over the federal money,
districts had told hundreds of teachers they don't have a job in the
upcoming school year.

State education officials estimated schools would eliminate 2,600
education jobs, including 1,500 teachers, without the stimulus money.

Clyburn, D-S.C., inserted an amendment in the federal law with Sanford's
anti-bailout stance in mind, saying legislators could go around a
governor's refusal. But the legality of that was later questioned.

But on Monday, U.S. District Judge Anderson cited Clyburn's amendment in
saying it was clear Congress intended to allow legislators to get around
governors who didn't want the money.