COLUMBIA, S.C. - The Obama administration on Monday rejected South Carolina Gov. Mark Sanford's request to use $700 million in federal stimulus cash to pay down state debt. White House Budget Director Peter Orszag said in a letter to the Republican that the federal stimulus law doesn't allow President Barack Obama to make an exception for that cash. Sanford spokesman Joel Sawyer had no immediate response, but the governor has said he would reject part of the stimulus money if Obama wouldn't give him flexibility in spending it.
The $787 billion stimulus legislation sets strict rules for the $53.6 billion being sent to help state budgets, Orszag wrote. It calls for 82 percent of the money to be used for public schools and colleges and 18 percent on public safety and other government services.
By JIM DAVENPORT Associated Press Writer
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