Certifying the state's intention to request and use all funds that may be available to the state under the American Recovery and Reinvestment Act of 2009.
The passage of SCR49 is poised to have substantial implications on state laws and the management of state resources. By expressing the intent to accept funds under the federal act, SCR49 enables modifications to existing regulations that could provide critical support to the Unemployment Compensation Trust Fund. If accepted, Texas could potentially avoid a significant deficit tax burden on employers, which could otherwise increase unemployment taxes, further exacerbating economic strains on businesses already suffering from the recession.
SCR49 is a Senate Concurrent Resolution from the Texas legislature that certifies the state's intention to request and utilize funding available under the American Recovery and Reinvestment Act of 2009. This resolution was introduced against the backdrop of a severe economic downturn, which has resulted in significant job losses in Texas, with estimates suggesting over 250,000 jobs lost and a projected 300,000 jobs to be shed in the coming year. The resolution emphasizes the need for immediate state action to mitigate the adverse effects of the recession locally and to take advantage of federal assistance.
A notable point of contention arises from Governor Rick Perry's intention not to certify approximately $556 million in funds designated for the Unemployment Compensation Trust Fund. The resolution is positioned as a legislative response to this decision, allowing the Texas legislature to assert its intent to access federal funds that the governor is unwilling to pursue. This raises questions about the balance of power between state leadership and legislative bodies in responding to economic crises, as well as the resulting impacts on funding essential services and infrastructure in Texas.