Stimulus Money Pits Cities Against States

"The nation’s cities and counties are asking Obama transition officials to give them most of the infrastructure money from the multibillion-dollar economic stimulus package, setting off a dispute with the states over who can launch transportation projects the fastest."

"The disagreement over the stimulus money partly reflects the increased tension between state and local governments during a worsening recession."

"Many city and county leaders already are upset at state officials who are slashing aid to local governments to cover budget gaps. Their anxieties over being shortchanged were heightened Dec. 2 when 48 current and incoming governors met with President-elect Barack Obama to ask Obama to direct much of the stimulus money to states."