By Peggy Venable
Unemployment Insurance Stimulus Funds
Texans should send a strongly-worded message to the Obama Administration and to Congress: Dont Mess With Texas!"
Our state has a strong economic track record and we dont want to see that record trampled by meddling politicians in Washington D.C. Thats why Texans should tell the state legislature to reject any federal stimulus money that comes with strings attached.
Look at the ways Texas is tops in the United States: Were No. 1 for job creation for government transparency online for having the most Fortune 500 companies in tort reform in exports and in population growth.
Texas is also one of a handful of states not facing a large budget deficit. Because our leaders have been prudent in spending our economy has grown. Why would Texas want to adopt the failed policies practiced by Washington D.C. or promoted by California?
Yes some Texans are unemployed some families are struggling and well-intentioned citizens and officials want to help. But every dollar we designate to expand government programs is one less dollar available in the private sector to create jobs.
The first rule of government should be to Do no harm." We Texans need to send a strong message to D.C.: Dont Mess With Texas! If you want to help cut the strings." In fact thousands plan to gather in Texas cities on April 15 to send that very message to our federal representatives. Gov. Rick Perry who has taken a strong and politically-unpopular stand against stimulus money with strings attached will headline the Dont Mess With Texas" Tea Party planned for 11:30 a.m. April 15 at Austin City Hall. Commissioner Michael Williams will also speak at the rally along with a number of taxpayer advocacy groups like AFP.
Some state lawmakers are saying Texas should take the money strings and all because it will help businesses and the unemployed now. But that statement is short-sighted. Projections are that the stimulus money will last five years. Then what happens? Taxes will have to go up to cover the expanded programs and extra spending.
The Legislature needs to focus on the long-term consequences of expanding our unemployment insurance program. For one thing Texas will have to raise unemployment taxes on businesses in order to receive the $555 million in one-time unemployment stimulus funds.
Any changes made to our current unemployment requirements will be expensive and permanent. And in order to get the money Texas has to agree to several stipulations like allowing those seeking part-time work to receive unemployment benefits or giving unemployment to individuals who quit their jobs to follow a spouse who has taken on a more lucrative job in a different location. Costs for these changes could run into the billions.
Governor Rick Perry has already said he will reject the $555 million if it comes with these federal strings attached. But some members of the Texas Legislature are talking about overriding the governors decision. Such action would be a violation of state law and an unconstitutional power-grab.
States like California will certainly take the money. But we at Americans for Prosperity predict California and other populous states like Florida Pennsylvania Ohio and New York all have unemployment rates higher than Texas. Ultimately the stimulus money will serve as a temporary fix" that wont fix their ailing economies.
The bottom line is this: Government doesnt create wealth and prosperity. The private sector does that best especially when provided with low taxes a reasonable regulatory environment and an available workforce.
Texans know how to spend our money better than government does. The Obama Administration and Congress would be better served to take a page from Texas playbook rather than attempting to call the shots in Texas.
Peggy Venable is the Texas state director for Americans for Prosperity.
