News Room

Against Perry's wishes, Senate OKs stimulus money for jobless
April 21, 2009

The Senate gave final passage to Senate Bill 1569, which expands the unemployment program so the state can get $555 million in federal stimulus money. It now heads to the House, where supporters and opponents alike say it is likely to pass.

Written by Kate Alexander and Jason Embry, The Austin American Statesman

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(Deborah Cannon/AMERICAN-STATESMAN ) Kevin Eltife Senator says U.S. aid good for nine years.

Lawmakers who want to defy Gov. Rick Perry and accept federal stimulus money for extending unemployment benefits cleared an important hurdle Monday.

The Senate gave final passage to Senate Bill 1569, which expands the unemployment program so the state can get $555 million in federal stimulus money. It now heads to the House, where supporters and opponents alike say it is likely to pass.

But the possibility of a Perry veto means that the House will have to move quickly if legislators want the opportunity to override that veto, which would require a two-thirds vote in both chambers.

Perry has not said whether he would veto the bill, but a veto is the only way for him to reject the $555 million, which he says comes with onerous requirements to expand government.

The bill, by Sen. Kevin Eltife, R-Tyler, makes three changes to the state's unemployment eligibility requirements to qualify the state for the additional aid, which would come just as a surge in claims is battering the state's unemployment trust fund.

The federal money would pay for the expansion in the program for nine years, Eltife said.

Eltife's bill also creates a nine-member task force that would review the changes and could recommend as early as 2012 that the Texas Workforce Commission scrap those changes, returning the program to its current parameters.

Perry and opponents of the legislation have expressed concern that the state would be committed to the expanded benefits after the federal money runs out.

Katherine Cesinger, a Perry spokeswoman, said the governor "does not support an expansion of the unemployment insurance program that would burden employers and ultimately hurt job creation."

Eltife pointed out that the Senate just passed a budget that includes $11 billion in stimulus money. That budget "expands all kinds of programs in this state. It has strings attached to some of them," he said.

Although there are six weeks left in the session, lawmakers need to finish a bill within the next month to attempt a veto override. During that period, the governor must veto a bill within 10 days of its final passage or it becomes law.

Business and Industry Committee Chairman Joe Deshotel, D-Beaumont, said the House is "up against a wall" to get the bill to the governor.

"Every day now counts," said Deshotel, who will sponsor Eltife's bill in the House. "We can make it through if it doesn't stall somewhere."

It was unclear Monday which House committee will take up Eltife's bill and how long it will take to clear that committee and get to the floor for a vote. Then, assuming the governor vetoes the legislation, the hard work would begin in getting the support in both houses necessary to override a veto.

Given Perry's clear opposition and the jam-packed legislative schedule, Rep. Wayne Christian, R-Center, said it would be "irresponsible of us to waste the citizens' valuable time (taking up the measure) if the governor already says it is vetoed."

"Why should we kill other bills that might be able to help the citizens of Texas if we know that this is a nonproductive exercise of yelling at each other on the House floor?" said Christian, a leader of conservatives in the House.

Deshotel said the possibility of a veto should not deter the House because the policy issue is a critical one.

He also said the governor might not veto the bill if he sees that it has broad-based support from both Democrats and Republicans, including House Appropriations Chairman Jim Pitts, R-Waxahachie.

"The governor can always change his mind. I want to get the bill to the governor," Deshotel said.

In the Senate, all 12 Democrats and seven Republicans supported the bill. Bob Deuell, a Greenville Republican who voted with Eltife, said senators received a flood of e-mails over the past few days from opponents of the bill, including business owners. The unemployment tax is paid by businesses.

"We got hit pretty hard over the weekend," Deuell said.

He later added, "It's always difficult to go against our friend the governor, but in this case I think there are some compelling reasons to do so."

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