Gov. Rick Perry will announce today that he is blocking the state from accepting $550 million for expanded unemployment benefits as part of the federal stimulus package. With an upscale Houston hardware store as his backdrop, he will paint the expansion as a burden on small business. http://www.statesman.com/blogs/cont...2009/03/12/perry_will_block_unemployment.html
What a selfish moron. He's got his. Screw the unemployed. This won't help the Texas economy, but it may help him with the Kool-Aid drinkers of the conervative/libertarian economic iedology.
Texas doesn't need the money, it's not like the Texas UI fund is facing like, a $447 million budget deficit that he created, or anything.... http://www.lubbockonline.com/stories/012309/bus_380430082.shtml
It's grandstanding, though for what purpose I'm not sure. The Legislature can still accept the money on behalf of the state.
Why is he using an upscale hardware store as a backdrop? It seems to me like he is using some hardware store near River Oaks as an example of a small business doing well but is going to face a burden when I suspect there are many hardware stores where the employees might have somethign different to say.
The money doesn't come without strings, and basically Texas would have to change its unemployment system to federal specs to accept the money. The fear is that the long term affect of accepting the money will be a negative due to the added cost of the federal unemployment required changes at the state level. Basically he's saying, sure we get half a billion now, but it may end up costing more billions later. Whether this is right or wrong is the real question. If Perry truly feels that the long term negatives outweigh the short term infusion of cash, then its a good move. I'd like to see the actual estimated long term costs of accepting the short term cash, then I would be able to make a more informed decision on whether or not I agree with the stand.
Not sure why you are willing to accept his judgment on this issue, as previously stated he is the same person who managed to make the state UI program go from surplus to $500 million deficit, in the guise of "returning money to taxpayers", who will then return it to the state with interest, in the form of bond issues to support the deficit.
Come on Gov. Perry, saddle up to the federal gov't nipple. All those watered down printed dollars are good for you... come on, try it you'll like it.
that's nothing, south carolina's governor refuses the funds and that state is one of freakin four with an unemployment level over 10%. says it will turn them into zimbabwe
Sam, It's a shortfall, not a deficit. They expected an $816 Million surplus, they got a $414 Million surplus.
if it's really a shortfall, and just a surplus, then why are they contemplating issuing bonds in 2010? to restore the surplus? And why does every news article say they are projecting up to a $750 million "deficit" by October?
But have they? According to them, they haven't been able to, and thus are projecting a deficit. EDIT: I should modify the above - I don't know if they have been or not - I don't think it matters, because ultimately they are projecting a deficit regardless of whether they have or not. EDIT 2: I get it, as an insurance program they are required to keep reserves on hand, which makes sense - but at the end of the day it's still a deficit. EDIT 3: according to a link - the Texas UI program kicks in a speciall "deficit tax" when it's below the limit. That makes things even worse. So let's recap: Rick decided the UI fund had too much money Rick cut UI taxes The UI fund is not able to keep enough cash on hand, goes into deficit/shortfall Taxes will automatically go up because of deficit/shortfall. Rick rejects $500 million lifeline from federal government because he says it will ultiimately cost people more money Which is going to happen anyway, because UI taxes automatically go up because of deficit/shortfall.
Hopefully Good Hair will finally be ousted by Kay Bailey and we can at least have different figures on stage. No way this guy deserved to be Texas' longest-serving governor.
I don't want Obama and his Chicago-machine style politics ruining the superior business climate that we enjoy in Texas. He's got too many strings attached to this "stimulus". Extending the benefits to part-time employees is extending Obama's socialist mitts on our economy. No gracias.
Thank goodness -- this socialist policy to take my hard-earned cash and give it to lazy unemployed people is ridiculous. Furthermore, it would cripple the state's coffers for YEARS and YEARS. This is not a move to stimulate the economy, this is a move to transform the states towards the liberals' idea of 'fairness'. It's a partisan political stunt by Pelosi/Reid/Obama, when what we need is actual progress. Shame on them for politicizing this crisis. Me littering while driving my luxurious SUV would create more jobs than this Democratic 'stimulus' package.
