--Arguments heard by SC Supreme Court regarding two lawsuits over federal stimulus money
--Supreme Court ruling expected by the end of the week
--If ruling is against Governor he will accept the funds
The fate of $700 million in disputed federal stimulus money is now in the hands of the South Carolina Supreme Court. The state’s highest court heard arguments Wednesday in two lawsuits over the money, both filed in an effort to force Governor Mark Sanford to request the money.
Gov. Sanford has refused to request the money, saying using it would leave the state with a huge budget hole in two years when the money is gone. But state lawmakers included the money in the state budget that takes effect July 1. The governor vetoed that part of the budget, but the legislature overrode his veto.
In the Supreme Court hearing, Sanford’s lawyer argued that the federal stimulus act gives the governor the authority to request the money.
Adam Charnes told the justices, "In order to apply for these funds, the governor must certify, it says the chief executive accepts responsibility that the investment that's being proposed to be made with these funds is an appropriate use of taxpayer funds. Well the governor doesn't believe that they're an appropriate use of taxpayer funds. His position is, of course, as everybody knows, that if the state accepts the $700 million in funds it should use an equal amount to pay down debt."
But Dick Harpootlian, the lawyer for two students who sued the state, argued that the state constitution gives the state legislature the power to spend money, not the governor. Since the legislature passed a state law, the budget, and the governor is bound to follow the law, he must request the money.
After the hearing, Harpootlian told reporters, "I think we're going to see this court rule on the important principle that the legislature determines how money is appropriated, how money is spent, and the governor has a role to play but he is not, as Justice Beatty implied, king."
Chief Justice Jean Toal told lawyers the court would try to have a decision as quickly as possible, likely within a day or two. Governor Sanford has said if the court rules against him, he’ll abide by that decision and request the money.
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