Washington  - US President Barack Obama met with dozens of the country's mayors at the White House Friday, promising closer cooperation but urging local authorities to spend a massive government stimulus package wisely.

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

A 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.

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)