AUSTINGovernor Rick Perrys recent decision to reject the $550 million stimulus funds earmarked to expand the states unemployment benefits is now causing a stir from both sides of the aisle.
Democrat attitudes have been akin to take the money now well sort out the consequences later." Shortly after Perry said he would reject the money the House Senate Committee on Federal Economic Stabilization Funding voted 5-1 in favor of a motion encouraging the Legislature to make necessary changes to enable the state to receive the stimulus package.
Among other statements Democrats have made Perrys decision has been labeled as purely political and pandering to Perrys right-wing base" by State Rep. Joe Deshotel (D) and a demonstration of the height of denial about the challenges confronting this state and its people" by Sen. Kirk Watson (D).
Prominent Republican Tom Pauken from the Texas Workforce Commission agrees that provisions should be made to take all the money. I agree with Gov. Perry that there should be no strings attached to the additional federal funds made available to Texas said Pauken I laid out a legislative approach which would allow us to get the money with no strings attached and thats still on the table.
Democrats argue that the stimulus money would expand the unemployment definition to help more low-wage workers such as single mothers college students and senior citizens prevent 45000 Texas workers from going without unemployment insurance.
The other side of the argument is that this money will create a deficit of at least $800 million by September triggering tax increases to compensate for the difference.
The state would be required to keep paying for the expanded benefits and increase tax burdens on businesses. By changing the definition of unemployment small businesses would suffer after federal money runs out. Republicans claim that a change in unemployment definition would counteract the stimulus packages objective of job creation by leading companies to limit hiring and raise prices.
Perry has assured Texans that people eligible for the benefits under the current system are still able to access the same benefits and that Texas has made future provisions for the people to provide additional benefits through the end of the year.
During these tough times Texas employers are working harder than ever to move products to market make payroll and create jobs Perry said at a news conference. The last thing they need is government burdening them with higher taxes and expanded obligations.
The Legislature plans to hold hearings on bills that would make the changes needed to accept stimulus money only its not just the Democrats who are pushing this forward. Republicans are being lobbied hard to accept and pass the bills.
How hard are Democrats pushing? Just last week Pauken said in a statement released after Perrys initial rejection of the stimulus money that he agreed with Perrys decision to reject the funding. However Pauken is calling the situation dire" and is now helping Democrats in finding ways to say yes to $550 million in extra unemployment benefits money.
It will be at the hands of a Republican majority Legislature to decide but only at the risk of a common sense gubernatorial veto.
