Senators Rodney Ellis, Eliot Shapleigh, Leticia Van de Putte, Wendy Davis, Mario Gallegos, Royce West, Judith Zaffiriniand Senator John Whitmire issued a joint statement out of Ellis' office within an hour of Perry's announcement he's rejecting $550 mil in stimpak money for UI.

"Governor Perry's decision will harm Texas families," said Van de Putte. "I am amazed that Governor Perry would put partisan interests above the interest of already unemployed Texans and those who will unfortunately lose their jobs due to this economy."

State Sen. Kirk Watson, D-Austin, is also quick to respond:

Refusing this money is not merely short-sighted or economically questionable - it demonstrates the height of denial about the challenges confronting this state and its people.

Texans, through their taxes, will still be responsible for every dollar that the federal government wants to send back to this state. This is economic development money, and it's meant to help Texans who need it the most.

The Governor's own Workforce Commission Chairman, Tom Pauken, told the Senate Nominations Committee last month that the state should accept this money. While doing so would require some policy changes to the state's unemployment program, Chairman Pauken noted that the Legislature would have ample opportunity to undo the changes in future years if it needs to.

It's unfortunate that his good advice has been ignored.

We agree with NFIB/Texas and the Texas Association of Business that accepting the federal Unemployment Insurance funding would create an additional tax burden on Texas' businesses.

On the other hand, rejecting the federal Unemployment Insurance funds is a sound fiscal approach for Texas that is consistent with a healthy respect for the principle of federalism.

We stand ready to work with you to craft Texas-based programs for adult education and intensive worker retraining to help meet the needs of the unemployed.

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