From the Institute for Policy Innovation
Nope no such thing as a free lunch. No such thing as free federal money eitheras Texas and other states are learning.
Under the just-passed $787 billion stimulus law Texas is due nearly $17 billion$555 million of it for increased benefits to the unemployed. Hold on though. It appears that to get the latter sum the state has to change some eligibility requirements in current law making benefits available to thousands of temporary and part-time workers. Permanently. Forever.
Of course when the stimulus money runs out in about two years the Legislature could technically say to these newly covered workers: Thats it; see you around.
We all have a big picture of that happening dont we?
No wonder Gov. Rick Perry and several other governorsfrom Mississippi Georgia Louisiana Idaho South Carolina and Alaskagrumbled last week that they might steer clear of some of the stimulus money. The concern was that once the stimulus money runs out in a few years there would be no way to cover future jobless benefits apart from raising the taxes business owners already pay to fund the unemployment system.
Nor was the unemployment system the sole area of concern for Texas. What about Washingtons push to expand Medicaid coverage? Any strings come with that $6.2 billion the stimulus bill allocates Texas for education? If so how long how tight? How about transportation projects$2.8 billion worth of them?
Lots of questions like these need answers which may be hiding in the fine print.
Gov. Perry has sent a letter asking for the money but apparently is still considering the option of declining part of it.
Theres something to that old aphorism Beware of strangers bearing gifts." Is Congress trying to stimulate the economy or blackmail the states into doing things more the way Washington wants them done or more likely both? But we already know the answer dont we?
