Washington  - President Barack Obama met with dozens of the country's mayors at the White House Friday, promising close cooperation but urging them to spend government funds wisely in order to halt the country's economic slide.

US cities and states have faced huge budget shortfalls in the country's year-long recession, forcing many to contemplate cutbacks in services just as demand for government benefits is rising.

A record 787-billion-dollar recovery plan that became law this week includes hundreds of billions of dollars in aid to states as well as investments in infrastructure, education and health that will be up to local governments to implement.

"You're on the front lines," of the crisis, Obama told the mayors ahead of a private meeting with the group.

"What I will need from all of you is unprecedented responsibility and accountability," Obama said, adding he would not hesitate to single out wasteful spending projects by federal or local authorities.

That "same message" of frugality and accountability applies equally to the country's 50 state governors, who Obama will meet with in Washington on Sunday, White House spokesman Robert Gibbs said.

The mayors for their part urged Washington to disburse the funds as quickly as possible to prevent an arrest of government services and said they welcomed Obama's call for greater accountability.

"We get called out every day at the local level," Miami Mayor Manni Diaz, an independent, told reporters. "We're all ready to go. We've been ready to go for some time."

US cities and states have strict financial regulations that forbid deficit spending. They must make "impossible choices," Obama noted, referring to the alternatives of raising taxes or cutting staff and services.

Obama on Thursday created a new White House Office of Urban Affairs to improve coordination with local governments. (dpa)