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.
Impact
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.
Summary
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.
Contention
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.
Relating to the establishment of the Texas Mircale Act (TMA), allowing for certain fees, authorizing certain ad valorem tax incentives for economic development, specifically certain tax relief from school district taxes for certain corporations and limited liability companies that make large investments that create jobs in this state, to authorizing the imposition of certain fees, and the repeal of Chapter 313 of Texas Tax Code and the Economic Development Act of the 77th Legislature.
Relating to small business recovery funds and insurance tax credits for certain investments in those funds; imposing a monetary penalty; authorizing fees.
Relating to agreements authorizing a limitation on taxable value of certain property to provide for the creation of jobs and the generation of state and local tax revenue; authorizing fees; authorizing penalties.
Relating to the promotion of film and television production in this state, including the eligibility of film or television productions for funding under the major events reimbursement program, the creation of a film events trust fund and a film production tax rebate trust fund, the establishment of virtual film production institutes, and the designation of media production development zones.
Relating to the creation of the Dallas Municipal Management District; providing authority to issue bonds; providing authority to impose assessments and fees.
Relating to the creation of the Dallas Municipal Management District; providing authority to issue bonds; providing authority to impose assessments and fees.