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Stimulus = plan vexes=20 Texas GOP leaders
11:31 AM CST on = Saturday,=20 January 24, 2009
=20State Republican leaders are reacting coolly to an $825 billion = stimulus=20 package that includes at least $27 billion for Texas =E2=80=93 a = windfall that would=20 ease pressure to cut state programs for the poor and send hundreds of = millions=20 of dollars to strapped urban school districts.
U.S. Rep. Joe Barton of Arlington, the most powerful Republican in = the=20 state's majority-GOP delegation, says much of the bill is "a big social = spending=20 splurge." Gov. Rick Perry told an anti-tax group this week that the = package=20 would reward some states that mismanaged their finances.
"Just bad message. Bad policy," Perry said in an interview videotaped = by=20 Empower Texans, which advocates spending cuts.
Still, Republican leaders are unlikely to reject the federal money, = which=20 includes money for local and state governments and green energy projects = and=20 would cut business and personal taxes. The House package will probably = be=20 approved next week, while the legislation could be passed by early = February.=20
Texas would get more than $5 billion for Medicaid, the health = insurance=20 program for the poor and elderly, which is mired in red ink. The Dallas=20 Independent School District would get as much as $201 million, some of = which it=20 could use to reduce class sizes and pay bonuses to attract better = teachers to=20 low-performing schools. The city of Dallas could receive up to $7 = million to buy=20 and rehabilitate foreclosed properties.
"If everything holds, this would be quite helpful," said Jon = Dahlander, a=20 DISD spokesman.
Millions of individual Texans and their families would directly = benefit, too.=20
About 8 million Texas workers would receive up to $500 =E2=80=93 and = families up to=20 $1,000 =E2=80=93 through a cut in Social Security payroll taxes on their = first $8,100 in=20 income. The state's poorest families would have access to a $1,000 = per-child tax=20 credit, affecting about 1.5 million Texas children. And nearly 350,000 = families=20 would get a temporary, $2,500 tax credit to help pay for college.
As unemployment climbs, so would the amount available for = unemployment=20 insurance, job training and food stamps. The state would get $846 = million for=20 unemployment insurance, which would allow for an extra weekly payment of = $25 and=20 an additional 13 weeks of benefits. Texans who lost jobs after Sept. 1 = could=20 keep their employer-sponsored health insurance, with the government = paying 65=20 percent of the cost.
The stimulus would send Texas another $1.8 billion for food stamps, = at a time=20 when the state has added 400,000 people to the nutrition-assistance = rolls since=20 August, according to the Center for Public Policy Priorities in Austin.=20 Economists say that money would be spent quickly, helping to boost the = economy.=20
Effect on jobs=20
Democrats have said the bill will create or save as many as 4 million = jobs,=20 including 301,000 in Texas. But many Republicans, and some economists, = argue the=20 bill has grown too large and lost its focus on job creation. Consumers = are more=20 likely to save money they receive through tax cuts, or use it to pay = down debt.=20
Bud Weinstein, professor of applied economics at the University of = North=20 Texas, said the bill should have included more money for transportation = and=20 other construction projects, because those are likely to put people to = work=20 sooner.
"In today's environment, nobody is going to go out and spend money," = Dr.=20 Weinstein said. "The economy is not going to grow significantly until = investors=20 and businesses and consumer confidence is restored, and the capital = markets=20 start working properly and banks start lending."
Many GOP leaders snipe at the emerging package. Perry has slammed = what he=20 calls a "bailout mentality." State Sen. Steve Ogden, R-Bryan, his = chamber's=20 chief budget writer, said Texas didn't need a federal handout.
Democrats seem to have dismissed such comments as showboating, = although U.S.=20 Rep Eddie Bernice Johnson said recently that House Appropriations = Committee=20 Chairman Dave Obey, D-Wis., mentioned Perry's comments to her.
"He probably should have never said anything like that," said = Johnson,=20 D-Dallas. "It makes it harder."
"Governor Perry has a habit of trying to score partisan points by = turning=20 down federal money," said State Rep. Pete Gallego, D-Alpine.
Some Republicans have even questioned adding jobless Texans to the = state's=20 Medicaid rolls, saying the government will eventually pull back the = extra funds.=20 State lawmakers would then face the difficult decision of having to fill = the=20 gap, or dropping some people from the program.
"Classic bait and switch," said state Rep. Dan Gattis, R-Georgetown, = the=20 House's chief health and welfare budget writer
Budget funds=20
Texas would get about $5 billion to shore up its budget, which is = being=20 squeezed by declining growth in sales-tax revenue and property tax cuts. = State=20 lawmakers have $9.1 billion less to spend this year than they did two = years ago.=20
Anne Dunkelberg of the Center for Public Policy Priorities said Texas = should=20 put extra Medicaid funds to work by fixing problems with the process for = screening residents for social programs. It could also help keep more = poor=20 children on Medicaid by enrolling them annually, instead of every six = months,=20 she said.
But U.S. Rep. Michael Burgess, R-Lewisville, said advocates are = losing sight=20 of the impact on the federal deficit, which is projected to be $1.2 = trillion in=20 2009.
"If the question is only could Texas use additional money to take = care of=20 problems of the uninsured =E2=80=93 of course, it could," said Burgess, = a physician.=20 "But the other part of that equation is, at what price?"
Robert Garrett reported from Austin and Dave Michaels from = Washington.
GRANTS FOR=20
SCHOOL DISTRICTS
Here's a look at estimated grants for local school districts under = the House=20 Appropriations Committee's "American Recovery and Reinvestment Act of = 2009." The=20 amounts are subject to change.
Dallas ISD: $201.5 million over two years
Plano: $23.5 million
Arlington: $43.6 million
Garland: $33.9 million
Irving: $22.6 million
Mesquite: $19.9 million
Carrollton-Farmers Branch: $14.1 million
SOURCES: Congressional Research Service, House Education and Labor = Committee=20
STIMULUS=20
BREAKDOWN FOR TEXAS
An $825 billion economic stimulus package now working its way through = Congress would send at least $27 billion to Texas. Here's a breakdown of = what=20 the state potentially could receive:
STATE AND STATE-
ADMINSTERED PROGRAMS
Transportation =E2=80=A2$2.42 billion =E2=80=93 Highways=20=E2=80=A2$336.53 million =E2=80=93 Transit, rail
=E2=80=A2$30.57 million =E2=80=93 Fixed guideway
=E2=80=A2$265.31 million =E2=80=93 Clean water
Food Stamps
=E2=80=A2$1.8 billion =E2=80=93 Texas increase
=E2=80=A2$26.3 million =E2=80=93 Oversight
Job Training
=E2=80=A2$82.82 million =E2=80=93 Youths
=E2=80=A2$45.97 million =E2=80=93 Displaced workers
=E2=80=A2$34.69 million =E2=80=93 Adults
Other
=E2=80=A2$846 million =E2=80=93 Funds for unemployment insurance=20=E2=80=A2$5.12 billion =E2=80=93 Medicaid funding
=E2=80=A2$2.57 billion =E2=80=93 2009 state fiscal stabilization fund =
=E2=80=A2$2.57 billion =E2=80=93 2010 state fiscal stabilization fund =
=E2=80=A2$22 million =E2=80=93 Low-income heating assistance
EDUCATIONAL PROGRAMS
Head Start=20=E2=80=A2$29.96 million =E2=80=93 Texas 2009
=E2=80=A2$29.96 million =E2=80=93 Texas 2010
K-12 education statewide
=E2=80=A2$1.24 billion =E2=80=93 Schools with high numbers of poor = children
=E2=80=A2$1.11 billion =E2=80=93 Special education
=E2=80=A2$1.32 billion =E2=80=93 School rehabilitation and = construction
=E2=80=A2$408 million =E2=80=93 Higher-education rehabilitation and = construction
DISD
=E2=80=A2$70.7 million =E2=80=93 Low-income schools
=E2=80=A2$48.06 million =E2=80=93 Special education
=E2=80=A2$82.73 million =E2=80=93 School rehabilitation and = construction
Higher education:
=E2=80=A2Up to $175 million =E2=80=93 in additional Pell Grant = funds=20=E2=80=A2Up to $300 million =E2=80=93 in additional Stafford loan = funds
FEDERAL PROGRAMS
Supplemental Social Security =E2=80=A2$310.9 million =E2=80=93 Additional funding=20LOCAL/STATE GOVERNMENT PROGRAMS
Emergency Shelter Grant program =E2=80=A2$104.1 million =E2=80=93 Additional funding for homeless = assistance=20Funds to buy up foreclosed properties
=E2=80=A2$190.4 million =E2=80=93 Texas' share of funds
=E2=80=A2$7.9 million =E2=80=93 maximum Dallas County share
Block grants
=E2=80=A2$214.8 million =E2=80=93 Childcare and development=20=E2=80=A2$70 million =E2=80=93 Community development
=E2=80=A2$48.15 million =E2=80=93 Community services
=E2=80=A2$99 million =E2=80=93 Affordable housing
SOURCES: Congressional Research Service, House Transportation and=20 Infrastructure Committee, House Education and Labor Committee, Center = for Budget=20 and Policy Priorities, Center for American Progress, state of Texas =
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