While Gov. Perry does plan to accept most of the approximately $17 billion slated for Texas, he rejects the unemployment funds, because it would force the State to enlarge its unemployment insurance program and greatly increase taxes for Texas employers. He assured Texans that the action will not affect existing benefits.
"Democrats denounced the decision as brazen political move that endangers thousands of unemployed Texans. An estimated 250,000 Texans have lost jobs since the recession began. 'After declaring his unconscionable decision today to turn away $555 million in unemployment relief meant for a rapidly increasing number of unemployed Texans, Gov. Perry will be resting comfortably tonight in a home paid for by Texas taxpayers,' said Sen. Wendy Davis, D-Fort Worth.
"As he does, families throughout this state will be huddling at their kitchen tables, poring through mounting unpaid bills and wondering how they are going to survive."
Part of that concern is based on a projected $800 million deficit in the Texas unemployment trust fund by September.
I thought I just read that Gov. Perry was going to continue existing benefits, meaning that he is going to use existing funding sources...
The Texas House Select Committee on Federal Economic Stabilization Funding voted 5-1 to push ahead with proposed changes in the Texas unemployment insurance law to meet federal criteria for accepting the money."
"'Again and again, we hear the purpose of the federal stimulus legislation is to create jobs, but this portion will actually slow job creation,' Perry said. 'If Washington really wanted to help, wanted to respect our rights as a state, they would send money to the unemployment account with no strings attached just like they did in 2002.'
"Perry touted Texas’ economy, relatively strong compared to the rest of the country, as proof that the federal government shouldn’t be telling him how to govern in an economic crisis.
"Perry is the latest Republican governor to turn down federal stimulus money. Louisiana Gov. Bobby Jindal said he would not accept nearly $100 million in stimulus money to expand unemployment benefits. South Carolina Gov. Mark Sanford asked for a federal waiver Thursday to spend $700 million in stimulus money to pay down state debt and said if the waiver wasn’t approved he would not pursue the money. That state’s Legislature is expected to make sure the state gets the money anyway, making Sanford’s move largely symbolic."
As I have written of Gov. Strickland, our State governments face some excruciatingly difficult decisions in this economy. Do we set priorities that take into account both the present and the future, or do we just take care of the moment and ruin our hope for the future?
"A politician thinks of the next election. A statesman, of the next generation."
-- James Freeman Clarke
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