PHILADELPHIA -- President-elect Barack Obama yesterday pledged to work with the nation's governors on job creation and economic stimulus plans to alleviate state budget jams and a faltering national economy.

Borrowing for Medicaid, infrastructure improvements and alternative energy should be part of the plan, he told the National Governors Association in Philadelphia's Congress Hall.

The meeting was closed to the public, but governors including Pennsylvania's Ed Rendell, chairman of the association, briefed a horde of reporters later.

"[Mr. Obama] made commitments about the areas of concern, but no specific financial commitments at all," Mr. Rendell said.

Others, though, have estimated that it could take as much as $700 billion to fund the kind of economic stimulus the Obama administration wants.

Mr. Rendell said the president-elect's approach "is the best of all possible recovery plans. It has the potential to add jobs and help businesses." Every $1 billion invested in infrastructure improvements would create at least 30,000 construction jobs that can't be outsourced, said Mr. Rendell.

Before the meeting, Mr. Obama held a news conference with Vice President-elect Joseph R. Biden and Mr. Rendell.

He said he planned to "spend most of my time [at the meeting] listening and not making a long speech. ... I am looking forward to hearing from you [governors] about the problems you are facing, about the things that are working and not working. I recognize that every single one of you is struggling to come up with a budget when you are facing great and growing needs."

He pledged to take quick action to help states.

"To ease the burden on our states we will need to take action swiftly," he said. "This administration won't delay in getting you the help you need."

At the meeting, governors told Mr. Obama that it takes too long to receive approval for federally funded infrastructure projects. Nationwide there are $136 billion in infrastructure projects ready to begin if only funding were in place, governors said. That includes $7 billion to $8 billion in projects in Pennsylvania, Mr. Rendell said.

Mr. Obama spoke with the governors at Congress Hall behind closed doors for an hour and 45 minutes.

The meeting was productive and cordial, although there was at least one moment of spirited debate between Mr. Obama and Republican Gov. Mark Sanford of South Carolina, participants said.

Mr. Sanford told reporters later that he is unsure the plan will make a difference and concerned that it would cause a devaluation of the American dollar.

"The ultimate economic stimulus is the entrepreneur with a dream," he said.

Republican governors also said it was imprudent to borrow to provide unsustainable economic relief.

Before the meeting, Mr. Obama vowed to reject partisanship and work with governors of both parties.

"To my Republican colleagues, I offer you the same hand of friendship, the same commitment to partnership, as I do to my Democratic colleagues," he said. "There is a time for campaigning and there's a time for governing.

"One of the messages Joe and I want to continually send is that we are not going to be hampered by ideology in trying to get this country back on track."

The association endorsed Mr. Obama's plan, but not unanimously, Mr. Rendell said.

All the governors, though, appreciated Mr. Obama's effort to reach out, he and others said.

That includes the governor of Alaska and former Republican vice presidential candidate, Sarah Palin, who said she and Mr. Obama will put aside differences to work together on issues affecting states.

"I look forward to working with [him and Vice President-elect Joe Joseph R. Biden], and appreciate that President-elect Obama is looking for help from governors," she said. "It was a great meeting. He, having reached out to us, is very appreciated."

She still has concerns about Mr. Obama's borrowing plans, though. Instead of going into debt, government needs to prioritize where tax dollars go, Ms. Palin told reporters.

Democratic Gov. Mike Easley of North Carolina said his cross-party colleagues were skeptical at first but later were encouraged by a meeting they said bodes well for relations between the White House and state capitols nationwide.

"They needed to be sure this wasn't just a dog-and-pony show. They never had this kind of exchange with the current administration," Mr. Easley said. "The encouraging thing is that [Mr. Obama] was trying to find out what we need; he's asking us what we need."

Forty-eight members of the National Governor's Association attended. Its membership includes 55 governors and four governors-elect of states and U.S. territories.

Outside the meeting, a crowd of about 150 gathered. Many were simply hoping for a glimpse or perhaps a photo of high-profile governors such as Ms. Palin and California's Arnold Schwarzenegger. Others came hoping to hear about plans to fix the economy.

Self-employed flooring installer Sam Reven should have been working yesterday but had no jobs scheduled, so he joined the small crowd on the grounds of Independence National Historical Park instead.

"I'm off today because I have no business. This is the time of year when my season typically really gets moving, but I'm not seeing any action whatsoever," he said. New construction is lagging and homeowners don't have extra cash now for extras like renovations, he said.

He's feeling the effect in his wallet and only expects it to get worse.

"As a working person, I'd like to see the economy get a little more stable," said Mr. Reven, 53, of Gloucester City, N.J.