McDonnell, Howell say Congress should remove strings from stimulus money

The Republican candidate for governor, Bob McDonnell, and Speaker of the House William J. Howell, R-Stafford, are asking Virginia's congressional delegation to remove requirements that led Republicans in the House of Delegates to reject $125 million in federal stimulus funds for unemployment insurance.

The House Democratic leader, Del. Ward L. Armstrong, D-Henry, said the McDonnell-Howell request is a sign the Republicans have lost the public relations battle over a vote turning down the money for unemployment benefits that would have gone to about 9,000 unemployed part-time workers and unemployed people training for other jobs.

The Republicans "are in serious political trouble with the public because of their refusal to take the stimulus money," Armstrong said in a brief telephone interview.

McDonnell, who sided with the House Republicans, fired off a letter to Congress Tuesday. Howell commented on a similar letter, which was sent yesterday to the Virginia delegation by the Virginia Chamber of Commerce and 25 other business groups, including the National Federation of Independent Business and the Virginia Manufacturers Association.

The Republicans and the business community maintain that the requirements for the stimulus money would obligate the state to continue paying the unemployment benefits after the stimulus money runs out in 2011. Virginia would have to raise taxes to do so, they said. The higher unemployment taxes cause employers to restrict hiring, they say.

If Congress were to remove the requirements, the $125 million could flow directly to the state's unemployment trust fund for two years, and the state would not be left with an unfunded mandate, McDonnell wrote.

"We know Virginians need help and the funding is available," McDonnell added.

Tucker Martin, a spokesman for McDonnell, said yesterday that "if Democrats see this as a public relations issue, I would say that reveals some seriously misplaced priorities on their part."

He said McDonnell has been looking for a solution since the House rejected the funding on April 8.

Democrat leader Armstrong said the Republicans appear to be engaged in a "bait-and-switch tactic to put the onus on Congress. Once again they have misjudged public opinion."

He said the state should accept the money now and worry about getting Congress to change the requirement in two years.

G. Paul Nardo, aide to Howell, said the Democrats are engaged in political spin and don't want to solve the problem.

Contact Tyler Whitley at (804) 649-6780 or .