Leave it to Texas Republicans to decide it would be a good idea to reject $27 billion dollars in federal stimulus money earmarked for Texas. That’s money that would help some of Texas’ poorest citizens and some of the state’s cities and schools hardest hit by the economic downturn. 

The Dallas Morning News tells the story:

U.S. Rep. Joe Barton of Arlington, the most powerful Republican in the state’s majority-GOP delegation, says much of the bill is “a big social spending splurge.” Gov. Rick Perry told an anti-tax group this week that the package would reward some states that mismanaged their finances.

 

“Just bad message. Bad policy,” Perry said in an interview videotaped by Empower Texans, which advocates spending cuts.

So, $5 million for Medicaid is bad policy? Who would have thought so. Rick Perry, I guess. Here is more on where some of that $27 million (or more) would go:

Texas would get more than $5 billion for Medicaid, the health insurance program for the poor and elderly, which is mired in red ink. The Dallas Independent School District would get as much as $201 million, some of which it could use to reduce class sizes and pay bonuses to attract better teachers to low-performing schools. The city of Dallas could receive up to $7 million to buy and rehabilitate foreclosed properties.

 

“If everything holds, this would be quite helpful,” said Jon Dahlander, a DISD spokesman.

 

Millions of individual Texans and their families would directly benefit, too.

 

About 8 million Texas workers would receive up to $500 – and families up to $1,000 – through a cut in Social Security payroll taxes on their first $8,100 in income. The state’s poorest families would have access to a $1,000 per-child tax credit, affecting about 1.5 million Texas children. And nearly 350,000 families would get a temporary, $2,500 tax credit to help pay for college.

 

As unemployment climbs, so would the amount available for unemployment insurance, job training and food stamps. The state would get $846 million for unemployment insurance, which would allow for an extra weekly payment of $25 and an additional 13 weeks of benefits. Texans who lost jobs after Sept. 1 could keep their employer-sponsored health insurance, with the government paying 65 percent of the cost.

 

The stimulus would send Texas another $1.8 billion for food stamps, at a time when the state has added 400,000 people to the nutrition-assistance rolls since August, according to the Center for Public Policy Priorities in Austin. Economists say that money would be spent quickly, helping to boost the economy.

Here is more on the Republican’s sniping at the stimulus funds:

Many GOP leaders snipe at the emerging package. Perry has slammed what he calls a “bailout mentality.” State Sen. Steve Ogden, R-Bryan, his chamber’s chief budget writer, said Texas didn’t need a federal handout.

 

Democrats seem to have dismissed such comments as showboating, although U.S. Rep Eddie Bernice Johnson said recently that House Appropriations Committee Chairman Dave Obey, D-Wis., mentioned Perry’s comments to her.

 

“He probably should have never said anything like that,” said Johnson, D-Dallas. “It makes it harder.”

 

“Governor Perry has a habit of trying to score partisan points by turning down federal money,” said State Rep. Pete Gallego, D-Alpine.

 

Some Republicans have even questioned adding jobless Texans to the state’s Medicaid rolls, saying the government will eventually pull back the extra funds. State lawmakers would then face the difficult decision of having to fill the gap, or dropping some people from the program.

 

“Classic bait and switch,” said state Rep. Dan Gattis, R-Georgetown, the House’s chief health and welfare budget writer

 

But wait, there is more:

But U.S. Rep. Michael Burgess, R-Lewisville, said advocates are losing sight of the impact on the federal deficit, which is projected to be $1.2 trillion in 2009.

 

“If the question is only could Texas use additional money to take care of problems of the uninsured – of course, it could,” said Burgess, a physician. “But the other part of that equation is, at what price?” 

Burgess is spouting a Republican talking point that should sound like déjà vu–if you paid attention to federal politics in the 1990s. Remember when much of Bill Clinton’s progressive agenda got stymied because Republicans demanded that immediate attention be paid to the federal deficit? Of course, so did Texan and Treasury Secretary Lloyd Bentsen, all echoing the calls of Wall Street at the time that paying down the federal deficit would increase spending. 

The problem is that strategy won’t work right now. Perhaps in two or three years, it might mean economic stimulus, but probably not right now given the economic climate.

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