Perry Rejects $550 Million in Aid

Gov. Rick Perry today rejected $555 million in federal stimulus money that would expand state unemployment benefits.

Republican Perry has been an outspoken critic of Democratic President Barack Obama's $787 billion stimulus bill.
Perry did accept most of the roughly $17 billion slated for Texas in the plan.

The governor turned down the unemployment benefits because he said they would require the state to increase the tax burden on Texas businesses to fund an expanded program.

Perry told a Houston news conference that, in these tough times, Texas employers are working harder than ever to move products to market, make payroll and create jobs.

Perry says the last thing they need is government burdening them with higher taxes and expanded obligations. Rules for the federal money would require a change in the state's definition of unemployment.

Senator Kay Bailey Hutchison responded to Perry's decsion in a statement. 

"I hope that the Governor has carefully thought through the potential outcomes of todays 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," Hutchison said.