Remember how Rick Perry said he Was Not Going to Take Federal Stimulus Money. ... (but then he did ..... quietly) -DMN
All states must pledge that their share of the $787 billion package will be used to promote economic growth and create jobs.
Most of the money will be allocated along established formulas for existing state grants and programs, but some funding will be allowed for new and innovative programs that must be approved by federal agencies. The money is earmarked for education, transportation, health and human services, and extension of unemployment benefits and health insurance for those recently losing their jobs.
Perry then tried to duck the law by not posting how he was spending that good ole stimulus money-AAS
While he didn't want to take federal stimulus money for unemployment benefits, he had no problem with standing in line for a government loan.
THIS year it turns out that while Mr Perry was bragging about balancing the budget, a whole lot of that stimulus money he got went for that.
From the Wall Street Journal
Although Mr. Perry has railed against the federal economic-stimulus program, billions of dollars from that initiative helped Texas legislators balance the current budget. Those funds won't be available for the next budget.
In Feb 2010 Perry said Texas had billions in surplus. Huh?
Lloyd Doggett explains.
Doggett says state lawmakers used $3.2 billion in federal stimulus money last year to save state money, allowing them to end last year’s legislative session with billions in the state’s Rainy Day Fund.
By supplanting $3.2 billion in state education dollars, Doggett said, state lawmakers perpetrated “a massive abuse of what was intended.”
Bypassing the state in this round of federal aid is a safety net of sorts, to ensure state officials don’t divert education dollars to other parts of the budget, Doggett said.
“We just sought to go a little extra because of this history of Texas diverting $3.2 billion, to try to do the best that we could to see that this money actually goes to what it’s appropriated,” he said.
So now Perry and John Cornyn are crying in their beer that they aren't going to be able to get education money because, um, the feds want to make sure they actually use the money for education. Wah. Here's what the Chron said about that .
The proposal would allow the federal government to give money directly to school districts, provided Perry certifies that the federal support will not replace the state money. Perry must also agree not to proportionally cut education funding more than any other item in the next budget.
While the measure includes $10 billion in education funding nationally, Texas is the only state that must make such a certification before receiving the federal funding. Texas school districts stand to receive about $820 million in funding to hire additional employees.
Congressional Democrats pushed for the provision after Texas received more than $3 billion from the government in 2009 to boost education funding, only to see Perry not use the funds to augment the education budget.
Democrats charge that while Perry officially accepted the money from Washington, he simultaneously slashed the state's contributions to the education budget, allowing the state to essentially pocket the federal dollars without increasing school aid.
"Instead of a historic boost in local school support, our schoolchildren were left no better off," Rep. Lloyd Doggett, D-Austin, said. "Three billion dollars (in federal money) made no difference to our local schools."
I think that's fair. Use the federal money for what it's supposed to be used for, along with state funds.