Gov. Rick Perry is trumpeting a $90 million tax cut for Texas businesses stemming from the temporary suspension of part of the unemployment insurance levy, but people who represent workers oppose the move.

Texas' strong economy and record-low unemployment last year prompted more dollars than needed to flow into the unemployment compensation trust fund, Perry said in a Monday statement, "which is why I'm directing the state to bring that tax to a screeching halt for this year."

The one-year tax suspension sought by Perry is the first granted by the Texas Workforce Commission, which acted last month, said agency spokeswoman Ann Hatchitt.

The governor's office emphasized the commission took action after determining there is enough money in reserve to meet 2008 obligations. An estimated 370,000 businesses will see a tax reduction of about $10.80 per employee.

Texas AFL-CIO spokesman Ed Sills called the tax suspension "short-sighted," saying extra money could be better spent improving benefits for unemployed workers by, for example, allowing part-time workers to get a pro-rated level of unemployment compensation.

Sills also said the economic picture could change: "Six weeks from now, they might regret doing what they're announcing today."

The unemployment compensation trust fund by law must have an amount equal to 1 percent of all taxable wages in Texas, which would be an estimated $919.3 million, Hatchitt said. The fund's balance is $1.6 billion. The commission earlier reduced the tax rate and also is distributing surplus tax credits.

"I believe in truth-in-budgeting: When government levies a tax and collects more money than is needed, we must either stop collecting the tax, return the money or both," Perry said in his statement.

The vote to suspend the unemployment insurance replenishment tax, which is part of the overall unemployment insurance tax rate, was 2-1.

Commission Chair Diane Rath, who is designated to represent the public, and commissioner Ron Lehman, designated to represent employers, voted for it. Commissioner Ronald G. Congleton, designated to represent labor, voted against it.