GOP Governors Like Tax Cut but Won’t Fund It

Suspicious of their party leaders in Washington, Republican governors applauded Congress’ tax cut plan Saturday but warned that they will not let GOP lawmakers raid state budgets to pay for it.

Republican congressional leaders have considered asking the nation’s governors to return up to $6 billion in welfare money to help balance the books on their 10-year, $792-billion tax cut proposal.

Several governors accused fellow Republicans in Washington of trying to renege on pledges to ship the money to states. They suggested the development could damage their promised partnership with Washington.

“This must be a calamitous staff error, because I can’t believe they would do this to us,” said Gov. Frank Keating of Oklahoma, who was attending the four-day National Governors’ Assn. meeting, which opened Saturday.

“They would lose a great deal of credibility, and I don’t think they want to do that,” said Wisconsin Gov. Tommy G. Thompson, a national leader on welfare reform.

A growing force in Republican politics, the GOP governors said they are confident congressional leaders are preparing to back down.

But even the prospect of success has not dampened the state leaders’ bitterness. For most governors, the first word of a plan to seek state money came from press accounts--not their leadership in Washington.

Governors do not like being kept out of the loop, especially after the leadership promised in 1998 to give them a greater role in framing policy and political strategy.

“With any partnership, you’ve got to make sure your partner is reliable,” said Gov. John Engler of Michigan.

The governors’ stock rose after huge victories in the 1998 elections underscored the popularity of their mainstream, can-do politics while confrontational congressional Republicans suffered a series of election night defeats.

Seeking the return of money would be an irony for a political party whose oft-stated philosophy is to dispense dollars and power to the states. It also might force Republican governors to forsake tax cuts at home for spending needs in Washington.

The proposal posed a dilemma for Texas Gov. George W. Bush, the leader of the nation’s second-largest state and the front-runner for the GOP presidential nomination.

Spokeswoman Mindy Tucker said Bush “supports keeping the funds in the states and hopes Congress will listen to the nation’s governors on this issue.” Bush was not attending the governors’ meeting.

Under welfare reforms enacted in 1996, the nation’s governors were guaranteed current levels of funding for five years. Governors lobbied for the guarantee, saying they had assumed a heavy risk because the need for welfare money could outstrip the supply of federal money.

The states have dramatically reduced welfare rolls and, in some cases, have surplus welfare money.

Republican Gov. Mike Leavitt of Utah, incoming chairman of the governors’ group, said Congress needs to realize the states are done with the easiest part of welfare reform; the toughest and most expensive cases--welfare recipients with the lowest prospect for jobs--remain a challenge.

“Let’s keep the financial integrity of our relationship [with Congress] intact,” he said.

The idea of seeking state money was broached last month by Rep. Tom DeLay of Texas, the GOP whip, and approved by Speaker J. Dennis Hastert of Illinois.

Several governors and their aides said they suspect the idea was leaked to reporters to test the level of opposition, which is high.

Engler said the leadership used the threat to show rank-and-file lawmakers what might happen if they propose too much new spending.

“It’s fizzled,” Thompson said of the idea. He and several other high-profile state executives personally lobbied congressional leaders in recent days.

Sen. Don Nickles (R-Okla.) and Hastert are making separate appearances at the governors’ meeting and are expected to offer an olive branch, state officials said.

But there was no clear signal Saturday that the leadership was backing down.