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At the same time, Davis accused some of his Senate budget-writing colleagues of political posturing and deception in their efforts to force Gov. Mark Sanford to accept that money.
Davis, R-Beaufort, chided other senators for what he called a "cheap political point" when they left out $578 million in guaranteed stimulus money.
The fight began last week after the state Senate released its 2009 budget proposal. That plan omitted the $578 million.
The House version of the budget includes that money, which would be used for, among other things, increased reimbursement for Medicaid claims.
"They wanted to create a scenario that would create fear and scare people into putting pressure on the governor to accept the $700 million," Davis said Saturday. "It's absolutely disingenuous."
Sanford, who would have control of the $700 million, notified the White House on Friday, only hours before the deadline to request the stimulus money, that he would ask for nearly $2.8 billion allotted for South Carolina. But he warned teachers not to expect to see any of it in the classroom.
Sanford has said he doesn't want to spend money on programs that the state would have to pay for after the federal money is gone. He still hopes to use the $700 million to pay down state debt, something federal officials have twice told him he can not do.
"The governor and I don't want ... the money to go toward reoccurring costs," Davis said,
"because when that money dries up in two years, we're left holding the
bag."
Davis thinks he has a compromise that would satisfy both the governor and his dissenters.
Davis' solution is to use the $700 million to pay one-time costs and for capital funds projects. As an example, he said, educators and law enforcement officials could use the money to purchase supplies or to construct the buildings they need.
Davis, Sanford's former chief of staff, said the governor would likely be receptive to such a compromise because it wouldn't create increased debt in the future.
Davis said he hopes to work out details of the compromise in the Senate in the coming weeks.
Sanford has at least 75 days to explain to federal officials how he would spend the portion of the stimulus he controls, Davis said. The $700 million, if accepted, would be split into two equal payments over two years, he said.
The uncertainty over the money's availability has kept educators and law enforcement officials guessing on how many layoffs and cutbacks to expect.
"Things are no clearer today than they were yesterday," said state superintendent of education Jim Rex in a news release Friday. "The situation is still confusing and contentious, and districts can't postpone their budget process indefinitely while they wait for this political drama to play
out."
Rex said he expected to lose 2,600 jobs across the state, including 1,500 teachers, if the money doesn't go to schools. If a portion of the $700 million is given to schools, about 700 jobs, including 500 teachers, could be saved, he said.
"Politics is the art of possibility, and although there is still a great deal to work out, we are making progress on getting this money here," Davis said. "I guarantee you, this money will be spent in South
Carolina."
