Obama, governors: 'Rubber meets road'

by Mark Silva

President Barack Obama, meeting with the nation's governors at the White House during the launching of a massive federal economic stimulus, is calling on all to "work together'' during what promises to be "tough times.''

Obama and Vice President Joe Biden will meet with the governors at the White House this morning, and Obama hosted the governors Sunday evening for his first state dinner as president - an evening capped with entertainment by Earth, Wind and Fire.

"We are going through some tough times,'' Obama told the governors assembled for dinner in the State Dining Room. "I don't need to tell you -- you're seeing it in your own budget, you're seeing it in your own state.''

The president only obliquely acknowledged the dispute that some Republican governors have with the $787-billion stimulus that Congress has approved without the votes of any Republican House member and with only three GOP senators - with a few questioning how much, if any, they will accept for their states.

But on the sidelines of the dinner, governors openly discussed concerns about the stimulus, with Mississippi's Republican Gov. Haley Barbour explaining his dispute with unemployment benefits in the bill, while others, Republican and Democrat alike, said they will be happy to accept the money for their states.

"There are going to be some differences, both within your state and in the country, in terms of how we address these problems,'' Obama told the governors. "Here's my assurance. I know that each and every one of you are making the decisions you make, and taking the positions that you take, based on what is best for your state. And not every state's the same, and each of you have to take into account the particular characteristics and demographics and culture and perspectives of your states and your parties.

"But I want you to know that regardless of our occasional difference, and in this very difficult time, my hope is that we can all work together,'' he said. "And I'm confident that we can.''

(California Gov. Arnold Schwarzenegger and wife Maria Shriver, above, arriving at the White House Photo by Mike Theiler-Pool/Getty Images)

The White House had relied heavily on the governors to quickly assemble a catalog of "shovel-ready'' projects ready to go with the help of some of the money contained in the American Recovery and Reinvestment Act that he won during his first four weeks as president. And now is he counting on them to start spending some of that money quickly to spur new jobs.

Pennsylvania Gov. Ed Rendell, a Democrat and chairman of the National Governors Association meeting again with the president today, said before dinner Sunday that the stimulus represents only "the first step'' in what's needed to address an infrastructure deficit.

"We're going to talk about the implementation of the stimulus program, but we're also going to talk about infrastructure, which is my agenda as chairman,'' Rendell said before the dinner. "Although the stimulus program is a great first step, we want to impress upon the president that it's only the first step.''

"The vast majority of the money is acceptable to us, the conditions are not significant or not objectionable,'' Mississippi's Barbour said. "There is some money that we won't take because of the requirements, particularly the unemployment compensation money.

"We do not, in our state, pay unemployment compensation to people who are not willing and able to work full time,'' Barbour said. "The bill would require us to change that, which would result in a large tax increase when the federal money runs out, and that's why we're not going to take it."

Obama acknowledged the challenges that the governors face in his remarks.

"You're where the rubber hits the road,'' Obama told the governors. "And you have to make tough decisions all the time, even when there's a lot of fussing and fighting here in Washington. The bottom line is, you still have to make sure that schools are open, that children are learning, that people who are falling on hard times are getting help. And so our goal and aim is to make sure that we are making life easier, and not harder, for you during the time that we're here in Washington. ''

The American Society of Civil Engineers has pointed to a $2.2 trillion infrastructure debt, Rendell noted before the dinner, "and of course there's only about $150 billion in the stimulus, so we need to plan for the future, for the next five to 10 years."

Did this mean the governors would be asking for more money? "No, not for more money,'' Rendell said, "but to plan to develop a comprehensive plan for the next decade to repair the American infrastructure."

On the Republican governors saying they have qualms with accepting the stimulus: "I think you've got to be very careful -- all they're saying is they don't want the money in the unemployment compensation area, because that would cause an increased state match.

"My view is, it's going to cause an increased state match,'' Rendell said. "Pennsylvania has a huge deficit, but I owe it to the people of Pennsylvania to take that money. So they're not not taking overall money, they're just not taking this one segment. It's very important to get that right."

At the first formal dinner of the Obama administration, with the president and guests in black tie, Obama played it light as host, allowing that "the last thing I want do is hold up the food.'' He said that even his senior political adviser, David Axelrod, had "cleaned up pretty well.''

The president sat between the wives of Rendell and Republican Gov. Charlie Crist of Florida, who has been outspoken in his support of the federal stimulus.

Crist was asked if there had been any "arm twisting'' among Republican governors asking their colleagues to go along with the plan.

"A little bit. It's not that dramatic,'' Crist said. "I think as my friend (California) Gov. (Arnold) Schwarzenegger said, if there are others that don't want it, we'd be happy to take it to rebuild Florida, in my case."

The California governor had said in a Sunday news talk show appearance that Obama needs "team players'' and he is supporting the stimulus.

Obama wore a black tuxedo and black tie, First Lady Michelle Obama a silver dress. The tables were decorated with gold centerpieces and red roses.

A small Marine jazz combo entertained the governors in the Cross Hall of the White House before dinner.

Afterward, the East Room across the hall from the State Dining Room was arranged for the evening's entertainment.

Earth, Wind and Fire opened with "Boogie Wonderland," which prompted various elected officials to nod their hands to the rhythm. The drummer was waving his drumsticks, urging all to dance. As pool reporters were ushered out of the room, the band was playing "September.''

With credit to the pool reporting of Mike Madden of Salon.com