Louisiana Governor Fights Back...

It looks like the governor of Louisiana is going to decline stimulus money. Here's a transcript of his radio interview:

Hugh Hewitt interview with Governor Jindal of Louisiana

Keep in mind, he's only refusing money that mandates changes in state law. Those monies that help the state without changing laws will still be accepted. Here's his official legislation proposal. It's dry reading, but near the bottom is where he goes into his official reasons for declining portions of the stimulus package.

For clarification purposes, here's an article explaining the stimulus bill measures being introduced and the constitutional laws that are being violated by the force-feeding of stimulus money.

Keep in mind that each state is effectively a nation onto itself. All the states in the union agree to work together for the common good. Hence, the "United States of America".
The Federal government is the system established by the states to handle affairs that affect the nation as a whole. Foreign affairs, military defense against outside threats, etc.
State government serves it's citizens and Federal government serves states. This is a very simplified explanation of the responsibilities of the various levels of government, but should help you understand how our system was designed and how these responsibilities are being shuffled around or usurped.

If you're interested, read the comments on the legal explanation. One poster said (s)he was all for the abolition of state government and having a centralized national government. I nearly fell out of my seat when I read this. This is the mindset Obama's administration is fostering.
The United States is unequaled throughout history for average quality of life, technological advancement, financial strength and overall happiness of it's citizens.

Our system has it's flaws, but it works amazingly well when the Constitution is adhered to. The proof, as they say, is in the pudding.