WASHINGTON -- Gov. Bob Riley said Sunday that he may reject about $66 million of federal economic stimulus money meant to expand unemployment benefits, calling it a bribe that usurps state authority.

"I will never support something that takes away our state's ability to set our own rules and regulations for unemployment," Riley said.

Riley, in Washington for the National Governors Association meeting, said he is still studying the rules for accepting the extra unemployment compensation money and has not decided whether to turn it down. If he does, he'll join a handful of other Southern Republican governors who are finding that some aspects of the $787 billion federal economic stimulus package intrude on state policy.The stimulus law, signed last week by President Barack Obama, will send about $3 billion to shore up Alabama's ailing state budgets, mostly for Medicaid, transportation projects and education.

Riley said the law also gives Alabama about $33 million for unemployment compensation, including increasing benefits by $25 per week, which he will accept. But if the state agrees to expand eligibility to even more laid off workers, the figure jumps to about $99 million.

"To come out and offer us twice as much if we agree to the federal philosophy, that really is like a bribe," Riley said in an interview. "We're not going to give up Alabama's responsibility and authority to determine what our own business interests and employee benefits are going to be."

The extra $66 million would last less than three years, and Riley argues that the mandate would remain, leaving Alabama businesses to pick up the slack. In Louisiana, for example, Gov. Bobby Jindal said the law would eventually cost his state's businesses an extra $12 million in higher unemployment taxes. An estimated cost for Alabama businesses was not available Sunday.

But if Riley turns down the extra unemployment funds, Democrats in the Alabama Legislature would object, according to state Sen. Roger Bedford, D-Russellville.

"If governors don't step up to the plate to help people who are hurting in our states, then the Legislatures have a right to apply for the money and I can assure you we're going to get every dollar we can to help Alabamians," Bedford said Sunday.

Nationally, about 37 percent of unemployed workers collect unemployment benefits, according to the National Employment Law Project, which supports the expanded unemployment benefit program to cover more low-wage and part-time workers who lose their jobs. They estimate that, if states agree to the expansions, another 500,000 workers a year across the country would be eligible to collect unemployment.

Alabama's unemployment rate in December 2008 was 6.7 percent, up from 6 percent in November.

E-mail: morndorff@bhamnews.com