Perry Rejects Unemployment Stimulus Funds

Texas Governor Rick Perry today rejected federal stimulus funds designed to help bolster the state’s unemployment insurance program.

From his office:

Gov. Rick Perry today stood with Texas employers and the millions of Texans they employ to resist further government intrusion into their business through an expansion of our state’s unemployment insurance program.

“Texans who hire Texans drive our state’s economic engine. During these tough times, Texas employers are working harder than ever to move products to market, make payroll and create jobs. The last thing they need is government burdening them with higher taxes and expanded obligations,” Gov. Perry said. “I am here today to stand with Texas employers and the millions of Texans they employ to resist further government intrusion into their businesses through an expansion of our state’s unemployment insurance program.”

Strings attached to the unemployment insurance stimulus dollars would require an unprecedented change in Texas’ definition of unemployment, increasing the tax burden borne by Texas employers. This increased burden would counteract the stimulus package’s objective of job creation by leading companies to limit hiring and raise prices on products, hindering their ability to overcome the economic crisis and ultimately limiting growth.

The governor reiterated that Texans eligible for unemployment insurance under the state’s current system would retain the same benefits. He also noted that Texas recently accepted the stimulus funds that had no strings attached, that provide additional unemployment benefits through the end of this year.

“If you are an unemployed Texan, and lost your job through no fault of your own, our state’s unemployment system has covered you and will continue to help all Texans who are pursuing a full-time job,” Gov. Perry said.  “My focus has been, and continues to be, cultivating an environment that creates more jobs for Texans. That is why I am so concerned about the belief that has gained a foothold in our national consciousness that the best and only way to solve our nation’s problems is to drown them with taxpayer dollars.”

Perry’s rejection of the UI stimulus funds could but every single dollar Texas was to receive under the stimulus package in jeopardy.

It is unclear whether or not the Texas Legislature can still pass a concurrent resolution to go over Perry’s head and accept the funds.