Senator Eliot Shapleigh - El Paso, Texas

AUSTIN — Gov. Rick Perry said Tuesday he’s not sure the state should accept all of its projected share of federal stimulus money — $16.9 billion and counting by preliminary estimates — because of the “mile-long” strings that might be attached.

“In Texas, we actually know it is a good idea to look a gift horse in the mouth. If we don’t, we may end up with an old nag,” said Perry, who has been critical of such federal spending and voiced concern over whether the state could afford federal strings.

“One thing that concerns me is that dollars are going to come into Texas that require us to match those dollars, and then two years from now, those federal dollars won’t be there, but we will be on the hook to pay for those programs going forward,” Perry said.

According to a preliminary legislative analysis, economic stimulus provisions that affect the Texas budget could total about $16.9 billion.

Perry didn’t say which programs he was referring to, and spokeswoman Katherine Cesinger said his staff still is looking over potential allocations to Texas.

One program that raised concern early on was funding for unemployment insurance that would be contingent on state changes allowing more jobless people to become eligible, Cesinger said.

Rep. Jim Dunnam, D-Waco, who heads the state House’s Select Committee on Federal Economic Stabilization Funding, said it’s hard to understand the GOP governor being reluctant to take stimulus funding.

“The governor every year comes in and wants half a billion dollars for the (state) enterprise fund to create jobs and stimulate economic growth and he’s going to say we don’t want $20 billion?” Dunnam said. “I find it difficult to understand.”

Perry said he welcomes federal dollars for one-time infrastructure improvements, such as transportation.

“You’ve got plenty of roads and re-doing some things down in Galveston County and that part of the state hurt by the hurricane. We’ll gladly accept those dollars. But we need to say, ‘No, thanks,’ if they’re trying to stick a bill on the state of Texas to expand government,” Perry said.

For the state to get economic stimulus funds, the governor must certify that Texas will use the money to create jobs and promote economic growth. If he declines to do so, however, the Legislature can accept the money on the state’s behalf by passing a concurrent resolution.

Senate Finance Committee Chairman Steve Ogden, R-Bryan, said he doesn’t think Perry will turn aside the money — though Ogden, too, is concerned over the stimulus spending.