The Difference between Perry & Hutchison on Unemployment?

Yesterday's speeches by both the Senator and Governor made several of us scratch our heads about where each stood on the subject of stimulus funding for unemployment.

Click here for a link to the Houston Chronicle's video interview with Senator Hutchison at yesterday's Texas Daily Newspapers Association meeting.

Senator Hutchison would be wise to understand that nearly one million Texan's are out of work. With funds for the Texas Workforce Commission expected to become insolvent within six months, this issue should be a high priority. If the Senator were to clearly set herself apart from Governor Perry's outright rejection based on the claim that the State's legislature has opposed the type of unemployment insurance coverage required by the federal stimulus bill, she could probably jump up in the polls a bit.

With so much media attention on this issue, its clear that the November 2, 2010 gubernatorial election in Texas is going to be interesting. Only 587 more days to go...

Sen. Hutchison says Perry not acting like a Leader

Jason Embry has posted additional information regarding Senator Hutchison's comments during a speech earlier today at the TDNA:

“The reason Texas is in good shape today is because of the attributes that we have that neither the governor nor I produced,” Hutchison told the newspaper group, speaking a few hours before Perry.

Earlier this month, Perry announced that he did not want the state to take $556 million in federal stimulus money in exchange for broadening the state’s unemployment insurance program.

The state’s unemployment trust fund is projected to be $750 million below a required threshold next fall, which would trigger a tax increase on employers to replenish it.

A federal infusion would not make the trust fund whole or preclude the rate increase. But it would reduce the amount needed to bring it back to the required level.

Hutchison criticized Perry’s approach but did not say whether she would have also rejected the federal aid.

“I agree with him on the point that the fed government should not have mandated the specifics in the coverage,” Hutchison said. “However I believe that we look at all of the aspects of this, that we are in a position where it’s not status quo in the fund. I think there are management questions about where we are.”

She added, “A leader would be taking time to look at all of these aspects and coming up with a better solution.”

Perry has said that taking the federal dollars would have cost more in the long run.

Listen to Senator Hutchison's exchange with reporters via the Houston Chronicle's media player:



Governor Perry was the keynote speaker for the same group at the Texas Daily Newspaper Association and spoke shorly after 12:30pm. Jason Embry also included the following comments from the Governor in his post:

“Our low taxes, controlled government spending and fair legal system give us a leg up on other states,” Perry told the Texas Daily Newspapers Association on Monday.

Perry has said that taking the federal dollars would have cost more in the long run.

“I think most Texans look at Washington, D.C. today and see what’s going on up there and they’re like, ‘Listen, the last thing we want is Washington coming down here to Texas and telling us how to run our state,’” Perry said. “We have a system in place that works. The people who lose their jobs by no fault of their own are going to be covered.”

Signaling how he will run against Hutchison, Perry used the word “Washington” seven times in a 100-second exchange with reporters.

KBH wants Perry to accept $555 Million Federal for Unemployment

Senator Hutchison has made clear her stance on Perry's rejection of $550 million for unemployment from the federal stimulus bill.

The Associated Press reports:

Gubernatorial candidate Sen. Kay Bailey Hutchison says Gov. Rick Perry should be looking for ways to accept $550 million in unemployment fund stimulus money but without committing the state to future federal mandates.

She told reporters at a Texas Daily Newspaper Association meeting Monday there may be a way to do that. She said Perry should be looking at every avenue to keep employers from facing higher unemployment taxes next year.

Perry faces Hutchison in the 2010 Republican primary. He recently rejected the federal money that would rescue the struggling unemployment insurance fund. He said it would commit the state to expanding jobless benefits.

Lawmakers call the move politically motivated.

Perry's aides did not immediately respond to Hutchison's remarks.

Not sure where Team Perry is or why they haven't responded. Usually the Governor's team is pretty quick at responding to comments. Perhaps they are still trying to figure out Empower Texans' conference call system from last night?

New York Times Editorial Pleads with Perry to Accept Stimulus Funding

Yesterday's editorial in the New York Times sharply criticized Governor Perry:

The unemployment portion of the federal stimulus package offers generous support to the states. To accept it, these states must make two reasonable changes in their unemployment insurance law. They must expand eligibility requirements that bar too many low-income workers from receiving compensation. And they must choose from a menu of options that include extending benefits to part-time workers and those who leave jobs because of family emergencies.

The claim by some governors that the unemployment aid would lead directly to tax increases has also been discredited. New taxes are triggered automatically when unemployment trust funds fall below specified levels. In many cases, filling their coffers with stimulus aid would actually postpone tax increases. When the stimulus money is spent, states would also be free to revert to the old unemployment insurance laws.

In Texas, Governor Perry’s decision to reject the money has sown considerable anger in the State Legislature. A House committee urged the full Legislature to overturn the governor’s decision. Lawmakers acted after seeing projections that the state unemployment fund was on track to run out of money in the fall, which would drive up taxes. Meanwhile, Gov. Mark Sanford of South Carolina now says that he won’t accept $700 million in education money unless he can use it to pay down debt.

The time has clearly passed for posturing. With large numbers of people losing their jobs, Mr. Jindal and Mr. Perry need to do what is best for their states and their struggling workers.

Live Blogging: Conference call with Gov. Perry

6:57pm
Just dialed into the conference call, but only music plays with a recorded message reminding us that, "the conference will begin when the speaker arrives."

7:13pm
Still waiting. Music never changes. Same recording.

7:15pm
The music stopped, but because I was disconnected.

7:16pm
Just dialed back in. Same music. Still waiting. Same recording.

7:23pm
Still just hearing music and the same recording...

7:30pm
One can only wonder what's going on. Still the same music and recording. The conference call was scheduled to begin at 7:00pm this evening. Comment or send a msg to @kayvsrick on Twitter if you know more about what's going on?!?

7:32pm
Just got disconnected again. Dialing back in.

7:34pm
Had to dial the conference call number a couple of times to get through. Either they are having major technical difficulties or Governor Perry and guests aren't available yet.

7:38pm
Sources within the Perry camp advise us that the conference call is still on, but they are experiencing some technical difficulties. Meanwhile, same music and recording.

7:41pm
The conference call that was scheduled to begin at 7pm still hasn't started. Same music. Same recording.

7:43pm
Looks like the conference call has been postponed. Details to follow.

7:48pm
New tweet from @GovernorPerry confirms the call has been postponed:

@mslinda25 Conference call tonight with @mqsullivan postponed to another day..... looks like they had a major technical malfunction...less than 10 seconds ago from web in reply to mslinda25

An email from Michael Quinn Sullivan at Empower Texans sheds further light about the technical problem:

We are sorry for the inconvenience, but the conference call this evening had to be cancelled this evening due to technical difficulties on our vendor’s end.

We hope to reschedule the call shortly.

Again, I am very sorry for the inconvenience.

Respectfully Yours,
Michael Quinn Sullivan
& the EmpowerTexans.com Team

The email was sent from Mr. Sullivan at 7:40pm, but ended up in many people's spam/bulk mail folder.

Conference Call with Governor Perry at 7pm

Texans for Fiscal Responsibility (d.b.a. Empower Texans) is sponsoring a conference call with Governor Perry, Phil King, Geanie Morrison and Ken Paxton this evening.

At 7 p.m. Sunday, simply dial toll-free (888)-356-3090, and then enter extension 12715.

The call will be focused primarily on the effects of the federal stimulus package on Texas' taxpayers and policy.

You will be able to ask questions by pressing "0" on your phone's keypad. An operator will confirm your name and get the substance of your question so we can structure the time.

We will try to get to as many questions as possible.

The organization's website states that, "Empower Texans exists to create and sustain a system of strong fiscal stewardship within all levels of Texas government, ensuring the greatest amounts of economic and personal liberty, and promoting public policies that provide individuals with the freedom to use their strengths and talents in pursuit of greater opportunities."

I'll be live blogging during the conference call, so visit kayvsrick.com for updates!

KBH Fundraiser in Round Rock today

Gardner Shelby at the Austin American Statesman reports that a fundraiser will be held for KBH in Round Rock this afternoon:

Sen. Kay Bailey Hutchison is scheduled to alight in Round Rock at midday Friday for a fund-raiser for her governor’s campaign hosted by the chairman-elect of the Round Rock Chamber of Commerce, Tom Vaughan, and his wife, Jana. U.S. Rep. John Carter, R-Round Rock, likewise is penciled in to be there; he earlier aired his support for Hutchison for governor.

Mr. Vaughan, a retiree, told me he’s supported GOP Gov. Rick Perry, but believes Hutchison deserves a shot in 2010. Hutchison and Perry are poised to face off in the March 2010 Republican primary.

“I’ve been a little disenchanted; I don’t think (Perry has) treated us as fairly as I think we should have been treated on our property taxes as well as our insurance; homeowner’s insurance specifically,” Vaughan said. And, he said, “he seems to be spending a whole lot of time on the border and not enough on education.”

Shelby's report says that, "An invitation shows tickets available for $40 for givers 25 and younger up to $500 per person on the host committee. Hutchison’s campaign has more information at 512-236-8656."

Last month the Community Impact Newspaper reported that Senator Hutchison, "was in Round Rock Feb. 17 to take part in a Republican steering committee meeting urging citizens to get involved with her campaign for Governor in 2010." Additional text from the newspaper includes:

U.S. Rep. John Carter, R-District 31, introduced the senator. Hutchison outlined key points of her campaign at the meeting, including lowering property taxes and electricity rates, reforming the education system to eliminate the high rate of dropouts, improving transportation, private property rights and access to health care.

"These are just some of the many areas to be addressed," Hutchison said. "We have to be good stewards of government so the Republicans can stay in control." Hutchison and Republicans in Williamson County and throughout the state are working to maintain Texas as a red state, she said.

Keep in mind that in December, KBH transferred $7.9 million from her federal campaign account into her state fund, which gave her an instant and early lead over Governor Perry. Around the same time, Perry reported having $6.6 million in campaign cash on hand at the end of December.

Why the TWC will eventually end up with the $555 Million for Unemployment

Call it a change in political strategy or crisis management, but a lot has changed in past few days since Gov. Perry has publicly rejected the $555 Million in federal stimulus money intended to shore up Texas's unemployment funding.

This weekend a number of Texas newspapers decried Perry's rejection in editorials. An editorial in Sunday's Houston Chronicle was the first to outline a possible means of accepting the federal unemployment stimulus funding:

The governor doesn’t have to accept this on our say-so. It’s according to Texas House Speaker Joe Straus, R-San Antonio. In a visit with the Chronicle editorial board on Friday, Straus said it may be possible to do a “hard sunset” on the program.

Translated from the Austinese, that means that the program could be ended when the federal stimulus dollars run out. There would be no permanent costs to the state’s business owners; no permanent changes to the state system dictated by Washington, as Perry evidently fears. Meanwhile, think of the good this would do tiding deserving folks over till the good times return. Straus said language in the stimulus bill may even offer guidance.

Then on Tuesday, the Fort Worth Star-Telegram offered a little more insight into a possible plan to accept the stimulus money:

But under a proposal by commission Chairman Tom Pauken, Texas would make the mandated changes to accept the money and then revert to current law after the federal dollars run out. Pauken floated the idea at his nomination hearing in February and has since met with lawmakers in both parties to further discuss the plan.

Pauken’s efforts were made independently of Perry’s office and reflect an apparent difference of opinion between the two men.

A bipartisan group of lawmakers is advancing a similar plan in legislation gaining ground in the Senate. Pauken has also been praised by lawmakers who want to overturn Perry’s rejection of the money.

Tom Pauken's efforts to go around the Governor and work with the Legislature shows what a political hot potato this has become; especially over the weekend.

A number of news outlets reported on an interesting public meeting held on Saturday in Arlington hosted by State Rep. Jim Dunnam of Waco, the chairman for the Select Committee on Federal Economic Stabilization Funding. The metroplex's KERA reported on Saturday's meeting:

Governor Perry's rejection of stimulus money for the unemployed lead to an overflow crowd of 500 at UT- Arlington on Saturday. KERA's Shelley Kofler reports it was part of the legislature's process for deciding how stimulus money is spent.

As citizens jammed the university conference hall workers removed room partitions to double the seating. Still a hundred more stood in the hallway unable to squeeze in.

The House committee chaired by Democrat Jim Dunnam of Waco is considering how Texas should spend $16 billion in stimulus dollars already accepted by Governor Perry.

But most of the crowd was here to weigh in on the Governor's promise to block $555-million unemployment dollars. While Perry has officially accepted Washington's stimulus package Texas will only qualify for the unemployment chunk if state legislators change state law. Texas would have to expand benefits to include part-time workers or two other groups currently not covered.

Over five hundred people at one public meeting, with most there to question why Gov. Perry rejected the aid. That's terrible media for the Governor, but it also shows the gravity of the unemployment situation in Texas. An article in yesterday's Houston Chronicle included the following statistics:

• A new Federal Reserve Bank of Dallas prediction of the state economy said globalization and international economic turmoil “are largely overwhelming the ability to dampen the downturn through local efforts.”
• Exports are down. The energy industry is contracting. Commercial building is facing a drop-off.
• Unemployment is growing rapidly, with a loss of 296,000 Texas jobs predicted for this year.
• Texas lost 75,800 jobs in January alone, according to the Texas Workforce Commission.
• There are now an estimated 797,000 unemployed Texans, with 196,000 collecting unemployment.

Nearly one million unemployed Texans... hey Rick, can you spare a dime?