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Texas Governor Rick Perry Rejects $555 Million in Unemployment Benefits


by: Phillip Martin

Thu Mar 12, 2009 at 03:46 PM CDT


Ed. Note: TexBlog PAC is trying to raise money to play a serious role in ousting Republicans from the Governor's office so we can take back Texas. Donate today if you want to help us in our fight!

According to the Texas Comptroller of Public Accounts and the U.S. Federal Reserve, the Texas economy will lose between 180,000 to 300,000 jobs in 2009, and the unemployment rate is expected to rise from 6 to 8.2 percent.

Key point: Texas is projected to lose 180,000 to 300,000 jobs in 2009. The Governor tells all of them -- screw off! And Hutchison's cowardly response was something along the lines of, "Well, wait, um...I haven't polled on this yet!" They're both equally pathetic.

Texas Governor Rick Perry has rejected $555 million in unemployment benefits that Texas was supposed to receive from the federal stimulus money. In a dramatically irresposible and craven attempt to appeal to Republican primary voters, Governor Rick Perry said "thanks but no thanks" to help Texas workers who don't have a job.

From the Houston Chronicle:

The Legislature can decide to accept the money, but Perry said the state has repeatedly rejected the idea of paying unemployment to part-time workers.

The Legislature is controlled by Perry’s fellow Republicans.

The money would go instead to other states, according to federal officials. But Perry told reporters in Houston today that this did not mean that tax payments by Texans would leave the state. [snip]

Perry said he was unsure how much more a business like Bering’s, which employs 170 full-time and part-time workers at two stores, would have to pay under the federal guidelines.

 

To review the complete idiocy of Governor Perry:

  1. Perry makes the announcement at the Galleria -- one of the wealthiest shopping areas of the state -- and admits that he doesn't know how much more a local business would have to pay, yet justifies their higher payments as a reason to reject the funds.

  2. The federal government has said the money will go to other states, yet Rick Perry thinks that no tax payments would leave the state.

Democrats were quick to speak up on behalf of Texas' families. TDP Chair Boyd Richie:

“First, the Governor   compared out-of-work Texans to junkies, and now he's using them as political   pawns to appeal to the talk show bosses that drive the agenda of Perry's   heartless Republican base,” said Texas Democratic Party Chairman   Boyd Richie. “We don't need a right-wing candidate masquerading as   Governor; we need a leader who will work with mainstream Texans in a   bipartisan effort to rebuild our economy.”

The Seante Democratic leadership raised the importance of this decision even further. From their release (which I quoted from atop the post):

"Governor Perry's decision will harm Texas families," said Senator Van de Putte. "With 26,000 Texans filing new unemployment claims each week, Texans need help now. The unemployment fund is already running low and will reach zero by October 1st. Why would Governor Perry place the burden on already stressed employers to make up the shortfall?  I am amazed that Governor Perry would put partisan interests above the interest of already  unemployed Texans and those who will unfortunately lose their jobs due to this economy."

Unacceptable. Deplorable. Disgusting. Even more hideous was Hutchison's completely cowardly comeback:

"I hope that the Governor has carefully thought through the potential outcomes of today's decision. With the state unemployment fund dangerously close to falling below the legal threshold, it is imperative that the Governor does nothing that potentially burdens small businesses with higher taxes in tough economic times or pushes those who have recently become unemployed and their families into further economic peril," said Hutchison, in a statement.

Translation: she hasn't polled on what she wants to think about the unemployed being denied $555 million yet. Coward.

 

More on the issue itself below the fold:

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The following is from the Senate Democrats' press release:

Texas' unemployment insurance fund faces a massive shortfall which, without swift action, could lead to an automatic tax increase on Texas businesses.  Under Texas law, the insurance trust fund has to maintain a certain balance -- today, approximately $850 million.  If the fund falls below that threshold, a "deficit" tax is levied on nearly all Texas businesses. 

According to the latest estimates, by September 2009 Texas unemployment trust fund will have reserves of only $100 million -- about $750 million below the floor.  In addition to the tax increase, the shortfall could mean an end to important economic development programs, including Governor Perry's Enterprise Fund.

 To take advantage of the federal stimulus aid, Texas must:

  • Join 21 other states --      including New Mexico, Oklahoma, Georgia, North Carolina, and Virginia --      in modernizing the way it calculates unemployment benefits.  Texas      currently disregards the most recent three to six months of a worker's      earnings when calculating eligibility - a practice only needed when claims      were processed manually
  • Allow those seeking      part-time work to be eligible for pro-rated benefits.  When the      economy bounces back, many of the new jobs may begin as part-time      employment and eventually become full-time.  Nearly half of the      states currently award benefits to part-time workers.
  • Pass family-friendly      legislation to allow benefits for spouses who quit their jobs because      their wife/husband is transferred to another part of the state.  The      Legislature already made this change for military spouses.
                   

I hope this is the last session he can ever ruin Texas as our Governor.

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People are more important than cows Rick (3.00 / 1)
I hope the federal government refuses Perry's request for drought relief.

Federal $ for cows = good.
Federal $ for unemployed Texans = bad.

I know this is Texas but since when did we start putting bovines before humans?

Perry, ranchers look for drought relief


As usual Texas Republicans (0.00 / 0)
lawmakers show complete and utter contempt for their suffering  constituents.  Why?  Because certain segments of their constituencies are somehow undeserving?  

When are Texans going to wake up and smell the coffee?  Rick Perry, Kay Bailey Hutchison, John Cornyn and all members of the Texas Republican Party do not work for a majority of their constituents.  

They work instead for their big donors and corporate fat cats who give limitless contributions to their campaigns.  

And so do members of our various city and local governments who  disingenuously  spin how extended employment benefits will increases taxes.  That would be taxes for the employers who do not want to pay unemployment insurance benefits for the employees they get rid of.  

It's all about them and their appalling greed and heartlessness. Shame on them and shame on us if we continue to vote for these cold hearted and self-absorbed "leaders."  


FYI (0.00 / 0)
Took down the photo b/c it was causing the page to stretch out in a weird way for some folks. Just an FYI.

Now, a very great man once said that some people rob you with a fountain pen.

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