Sunday, May 3, 2009

Texas should reject stimulus funds with strings

The Texas House will decide whether to accept the $555,000 federal stimulus Unemployment Insurance money. Two weeks ago the Texas Senate voted 19-11 to accept $555 million in federal aid that would help replenish the rapidly dwindling unemployment compensation fund.

Gov. Rick Perry, along with the Republican governors of Florida, Mississippi, Alaska, Louisiana, South Carolina and a few other states, rejected the money from the $787 billion federal stimulus package. Perry said there were too many strings attached that would hurt Texas employers and taxpayers.

"Bottom line: This will cost businesses $75 million a year from here forward, and that will cause them to hire fewer people," Perry said a few days after the Senate vote. "It's not good for Texas employers; it's not good for Texas employees."

Those who favor taking the money said unemployed Texans need it and if Texas doesn't take it other states will (other states taking the money doesn’t suggest they would get Texas’ funds – but they would need to comply with the program peramiters mandated by the feds.

Now it is the House's turn to tackle the politically-charged issue. And they should reject the funding, knowing that taking it would require Texas to expand our unemployment insurance program, and increase employer taxes.

Not taking the money won’t impact anyone currently eligible for unemployment in Texas. But taking it increases unemployment taxes. That should be a simple decision. Just say no!

Texans want pay checks, not unemployment checks.

No comments: