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Jackson Lee, Ellis fight for stimulus aid
March 16, 2009

Democratic U.S. Rep. Sheila Jackson Lee said she would ask Vice President Joe Biden, who chairs a task force on the use of stimulus funds, to allow Texas to receive the money even if the state enacts provisions to automatically end these additional benefits after two years. Current federal rules forbid such a “hard-sunset” provision.

Written by Mike Snyder, The Houston Chronicle

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Two Houston-based legislators laid out a state and federal strategy Sunday to thwart Gov. Rick Perry’s rejection of $555 million in federal stimulus funds for unemployed Texans.

The effort involves how to provide certain unemployment benefits that Texas doesn’t provide now, but that the federal government requires to receive the stimulus funds.

Democratic U.S. Rep. Sheila Jackson Lee said she would ask Vice President Joe Biden, who chairs a task force on the use of stimulus funds, to allow Texas to receive the money even if the state enacts provisions to automatically end these additional benefits after two years. Current federal rules forbid such a “hard-sunset” provision.

Making the changes temporary would be politically beneficial in getting them passed, said Democratic state Sen. Rodney Ellis, but he said the Legislature should eventually make the changes permanent.

With strings attached

Perry said accepting the stimulus money would increase costs on small businesses and would come with too many federal strings. The state would have to provide unemployment payments to certain part-time workers and to a spouse who stayed home to care for children while the other spouse worked, for example.

Ellis said he would work with colleagues to pass a resolution accepting the federal funds, make necessary additions to the state’s unemployment insurance system and override a presumed Perry veto.

Jackson Lee and Ellis spoke harshly of Perry’s decision.

“We find ourselves in a difficult situation because the governor of the state of Texas has decided that roads are more important than people,” Jackson Lee said, noting that Perry had accepted stimulus funds for infrastructure projects.

‘Unclear’ answer

She said members of the Texas congressional delegation asked Perry on Wednesday about his plans regarding the unemployment stimulus funds.

“I will, out of kindness, say that the answer that we got was unclear. I got the impression that all was well,” Jackson Lee said.

The following day, Perry announced his rejection of the money at a Houston hardware store. The governor’s spokesman couldn’t be reached for comment Sunday.

Jackson Lee questioned Perry’s assertion that accepting the funds would hurt small businesses by forcing them to make higher unemployment insurance payments. Unemployed workers patronize those same businesses, she said, but won’t be able to make purchases if they have no income.

Ellis urged Perry to put aside political considerations.

“People who are unemployed really don’t see Democrats, they don’t see Republicans,” Ellis said. “They see pain.”

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