PHILADELPHIA -- President-elect Barack Obama today 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.

He said Mr. Obama's tack "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.

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 or $8 billion in projects in Pennsylvania, Mr. Rendell said.

Mr. Obama spoke with the National Governors Association at Congress Hall behind closed doors for an hour and 45 minutes this morning. He spent nearly all of that time listening rather than talking, Mr. Rendell said. He asked governors for advice about how the federal government can best fill the needs of states.

The meeting was productive and cordial, although there was at least one moment of vigorous 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.

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 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 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 said she still has concerns about Mr. Obama's borrowing plans, though. Instead of going into debt, government needs to prioritize where tax dollars go, she said.

First Published: December 2, 2008, 5:00 p.m.