Republican governors at odds on U.S. stimulus cash

By Andy Sullivan

WASHINGTON (Reuters) - For many Republican governors, the $789 billion U.S. economic stimulus package is the equivalent of cod liver oil: they'll take it, but don't expect them to like it.

While almost every Republican in Congress has firmly opposed the huge spending bill, the nation's 22 Republican governors, including many possible presidential candidates, have struggled to reconcile their party's small-government philosophy with their need to patch shredded state budgets.

Some suggested they might not accept their share of the billions earmarked to help states pay their bills, but most have said they will accept the money even if they think the bill is flawed.

Republican governors like Tim Pawlenty of Minnesota and Bobby Jindal of Louisiana are poised to take on a national role as the party seeks direction after devastating electoral losses in 2006 and 2008 and must show that their states have prospered under their leadership.

But by accepting federal money that could help their states weather the recession, the governors risk muddying their party's small-government message, analysts say.

"When Republicans say they're against big government, it'll be easy to point to all these states where Republican governors embraced the funding," Princeton University professor Julian Zelizer said.

Unlike the federal government, state governments are required by their constitutions to balance their budgets and they now face anticipated shortfalls of $200 billion, according to the National Governors Association.

The stimulus package includes $54 billion to help states plug their budget gaps and pay for school modernization projects. Another $90 billion would help state governments pay for Medicaid health care for the poor.