From what I understand, this is not how the program works currently. From what I have seen and heard, the money Texas, South Carolina, Alaska, and a few other states are rejecting does not go to other states. The feds would have to change the law to make that happen, which I don't think is quite as easy as snapping their fingers and saying it is so.
Today marks a key deadline for applying for education funds under the $787-billion stimulus plan, and questions have been raised for weeks whether South Carolina Gov. Mark Sanford, a Republican, might reject them. The Associated Press reported Thursday that a spokesman for Sanford said he would accept a portion of the funding, leaving the state open to get the rest of the education money if it chooses.
But other Republican governors – Alaska’s Sarah Palin and Texas’ Rick Perry among them – have talked about turning back portions of their state’s funding under the mammoth bill. Since those governors raised the specter of returning funds weeks ago, Granholm has been saying she’d put the money to good use.“I firmly believe we cannot afford to leave a single dollar on the table,” she said in the letter to Biden, who is overseeing implementation of the stimulus plan for President Barack Obama. “Since at least three governors have stated that they do not plan to accept all the funds allocated for their states, I would ask that these resources be reapportioned.”
Do you think Granholm will get her way, and if so, will it play in the Rick vs. Kay race?
Does anyone know the facts and details of this issue?