Friday, March 13, 2009

Gov. Perry of Texas rejects stimulus money for unemployment compensation

The stimulus package in the US contains funds to extend the period of unemployment compensation. Workers in the US pay into state funds for unemployment insurance, and are eligible for benefits if laid off. Some states' unemployment insurance funds are experiencing stress in this time, and the stimulus fund bolsters these. The recent stimulus bill contained funding to bolster state unemployment pools.

Bizarrely enough, Gov. Rick Perry of Texas has rejected the stimulus funds for unemployment compensation. A few other Republican governors who are more concerned with political grandstanding rather than running their states effectively have stated an intention to do the same.

Texas' unemployment fund is, in fact, running low and may be bordering on insolvency. Gov. Perry suspended the unemployment compensation tax for businesses last year.

The linked article, by the Texas Statesman, outlines Gov. Perry's reasoning.

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