Thursday, April 23, 2009

Congress' watchdog agency says states need help covering the cost of overseeing their share of the massive federal stimulus program.

A report released Thursday by the Government Accountability Office says federal officials should clarify what stimulus money states can use to manage and audit the billions they will receive over the next few years. States and local governments will be responsible for handling more than a third of President Barack Obama's $787 billion stimulus program.

The GAO echoes concerns raised by state and local leaders who say they don't have the resources to handle the huge infusion of cash.

A leading Senate Democrat says he agrees that states need help paying for the added costs of managing their stimulus money. Sen. Joseph Lieberman says states should be able to tap some of the recovery money for that.