Texas Gov. Who Refused Stimulus Funds Asks for Loan

(AP)

Earlier this year, Texas Governor Rick Perry was one of a handful of Republican governors who refused some federal stimulus funds from President Obama's economic recovery package on the grounds that there were too many strings attached to the money.

Now that the state is dire straits, however, Perry is asking the federal government for a loan to cover the very expenses the rejected stimulus money would have paid for.

While Perry accepted most of the roughly $17 billion in stimulus funds allocated for Texas, the governor in March rejected $555 million that would have covered state unemployment benefits. Perry said he was not accepting the money because the state would have been obligated to expand its unemployment coverage, creating too much of a long term tax burden.

At the time, Texas Workforce Commission Chairman Tom Pauken reportedly said the state's unemployment compensation trust fund could be operating at a deficit by October. Now that the state's unemployment funds are depleting faster than expected, the governor is asking for a $170 million loan from the federal government, News 8 Austin reports.

"This is nothing out of the ordinary," Perry reportedly said. "We're following protocol that we put in place."

Democratic legislators in Texas are speaking out against the governor's actions.

"That $555 million would that would have come with the stimulus money wouldn't have to be paid back to the federal government, and that would have saved business taxpayers money for the next 20 years," said Democratic State Rep. Mark Strama, according to News 8 Austin.

[jeffh4764]

Unemployment money stimulates the economy.

[dickeydebra]

you needed for me to reset my email address wich is [e-mail]

[larrylinn1]

Go ahead with Perry's dream. Let Texass succeed from the United Sates. Shut down Fort Hood, the NASA Space Center, the DEA, the FAA, Customs, let Texass patrol the Mexican border,etc. Texas does not support the United States of America, they suck money out of it. Let Texass go.

[bigfoot01]

Rick Perry is absolutely the 'gift that just keeps giving' to the Democratic Party of Texas. He sets the standard for imbecility every time he opens his mouth. It's heartwarming to know that he will be the last Republican governor of Texas ever, and that his downfall and the downfall of his party are their own doings. But hey, he sure looked good doing it, especially the hair.

[DanFromMaine]

It appears that a few commenters here have missed the key concepts...BHO didn't pull that stimulus money out of his, um, er, HAT! To be technical, that's money we borrowed from China, and we promise to payback, with OUR tax dollars. Try to keep that thought on the front burner. The governor of Texas offered to reduce the Fed debt (and help his state by not adding add'l financial burden to the citizens of Texas). Please keep that thought front-and-center, too. The governor sought to BORROW money which would be REPAID to the federal government...something no other governor (to my knowledge) has offered. Again, that thought needs to be kept at the fore-front. Loans (unlike stimulus money) have fewer strings attached. Another key thought.

In short, it sounds like the Gov of Texas is showing more responsibility at state and federal levels than Congress, the President or 49 other governors.

Conerning unemployment...most governors would be glad to get down to Texas' 7% levels. (The nat'l avg is hovering around 10% now.)

I'd encourage people to keep these thoughts in mind (yes...simultaneously) when considering this topic. If that's too much to ask, please refrain from commenting, as this is a topic for the grownups....

[jeffh4764]

What do you say now that we're at a reported 8.2%? Do you also not realize that once an Unemployment Claim has expired, they are no longer counted in the statistics of the unemployed regardless if they are still not working. This is a classic example of a smoke and mirrors gig. The numbers LIE since they are not calculated comprehensively.

Do you also approve of his current living quarters? Vote this bastard out.. throw him out with the rest of the trash! 22 MILLION has been appropriated to rebuilding the Governor's Mansion from an arson fire. Perry probably initiated this himself to get more living space. I suppose 2,700+ sf. isn't enough. What the hell does he need with 5 bedrooms and 7 bathrooms anyway? Not to mention the moral issue behind spending CAMPAIGN money for personal use. I guess he can't make it on 150k a year? He's obviously out of touch with the real world, the working class. Perry is history come election time.

[differnet]

Texas, one of the Welfare States... I say we send him a teabag.

[Alligator70]

Yes, Texas did not want to extend unemployment benefits nor change their laws to benefit the unemployed but with unemployment in TX hovering over 7% and assuming the average family has 3 persons, 21% or more of Texans are suffering and the republican administrators thinking people are stock on a shelf look to balance their sheets feeling sure they nor theirs will never be unemployed, a tight situation they do not begin to comprehend. These rich administrators are oblivious to the suffering of others.

[Alligator70]

Yes, Texas did not want to extend unemployment benefits nor change their laws to benefit the unemployed but with unemployment in TX hovering over 7% and assuming the average family has 3 persons, 21% or more of Texans are suffering and the republican administrators thinking people are stock on a shelf look to balance their sheets feeling sure they nor theirs will never be unemployed, a tight situation they do not begin to comprehend. These rich administrators are oblivious to the suffering of others.

[mattcat25]

Just how would Governor Perry propose that any Federal (bailout) LOAN would be paid back?

Possibly through RAISING TAXES!???

[6591Hou]

Apparently the majority of you fail to comprehend the issues. Gov Perry (or as one of his detractors prefers to call him 'Gov Zoolander') turned down the $500m+ because it required the state to rewrite it's unemployment laws and make the state pay the increased unemployment benefits after the federal money was expended, at least resulting in increased sales taxes or instituting a state income tax would almost be certainly required. Now he's asking for a loan, not involving rewriting state laws, that's apparently $300m+ less than the amount originally proposed and with no strings attached....make fun of his political affiliation, or his hair, but he actually seems in this case to be trying to do what's best for his state.