Out of Control Policy Blog

Texas Gov. Perry to Reject Stimulus Money

Gov. Perry is reportedly set to follow Gov. Jindal's lead and just say "no" to a portion of the stimulus money:

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.

The Legislature still could move to change state law to draw down the money, but those changes would be subject to a Perry veto.

To be eligible for all the money, Texas must enact legislation that would change how the state’s calculates a worker’s eligibility and extend benefits to more workers, including those looking for part-time work.

UPDATE: The Governor's press release is here, and the American-Statesman's coverage is here.

UPDATE2: I'd be remiss if I failed to mention that South Carolina Gov. Mark Sanford rejected $700 million in stimulus money yesterday.

Leonard Gilroy is Director of Government Reform


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