By: Shapleigh S.C.R. No. 49
SENATE CONCURRENT RESOLUTION
WHEREAS, on Tuesday, February 17, 2009, President Barack
Obama signed the American Recovery and Reinvestment Act of 2009,
which was adopted by both houses of Congress on Friday, February 12,
2009, in an effort to revitalize the American economic market and to
reassure the global market of our nation's commitment to fiscal
accountability; and
WHEREAS, in the midst of the worst economic downturn since
the Great Depression, it is imperative that the federal government
take the necessary steps to reinvigorate the economy in order to
protect the fundamental rights and interests of all citizens; and
WHEREAS, the impact of our nation's economic crisis has begun
to take a toll on Texas, threatening health care accessibility and
affordability, education, transportation, state infrastructure,
and other vital state services; and
WHEREAS, the American Recovery and Reinvestment Act of 2009
is expected to create and save 3.5 million jobs, provide an
immediate tax cut to 95% of the nation's employed workforce, and
invest in roads, bridges, mass transit, energy efficiency, flood
control, clean water projects, and other infrastructure projects in
our nation; and
WHEREAS, Section 1607 of the American Recovery and
Reinvestment Act of 2009 provides that if, within 45 days of its
enactment, the state's governor fails to certify the state's
intention to request and use funds provided under the act, then the
state's legislature may certify the state's intention to use funds
not accepted for use by the governor by means of the adoption of a
concurrent resolution expressing that intent; and
WHEREAS, on Thursday, March 12, 2009, Governor Rick Perry
indicated his intention not to certify $556 million that the State
of Texas would receive for the Unemployment Compensation Trust Fund
from the American Recovery and Reinvestment Act of 2009; and
WHEREAS, since the beginning of the most recent economic
downturn, over 250,000 Texans have lost their jobs, including
75,000 in January 2009 alone, the single largest monthly loss on
record; and
WHEREAS, the United States Federal Reserve in Dallas has
forecast that the Texas economy will lose up to 300,000 jobs in
2009; and
WHEREAS, the state's Unemployment Compensation Trust Fund
will have a deficit of at least $800 million by September 2009,
which will automatically trigger the imposition of the unemployment
replenishment tax (or "deficit tax") on Texas employers; and
WHEREAS, the Texas Workforce Commission may be able to
temporarily lessen the impact of the deficit tax on Texas employers
by either bonding or borrowing, but Texas employers will still have
to repay any bonded or borrowed money; and
WHEREAS, it is credibly estimated that the deficit tax will
likely double the overall unemployment tax burden on the average
Texas employer; and
WHEREAS, in order to receive the $556 million for the
Unemployment Compensation Trust Fund from the American Recovery and
Reinvestment Act of 2009, the Legislature must make modifications
to existing law; the net gain for Texas through the 2010-2011
biennium would be approximately $474 million to the Unemployment
Compensation Trust Fund; and
WHEREAS, the deficit tax on Texas employers is estimated to
increase to 1.09 percent if the funds are not accepted; the tax will
increase to only .34 percent if the funds are accepted; and
WHEREAS, it is credibly estimated that each $1 in
unemployment funds distributed in Texas has a $2.24 effect on the
Texas economy; and
WHEREAS, Comptroller Susan Combs estimates that 2010-2011
revenues will suffer a $9.1 billion shortfall, representing a
projected 10.5 percent decline from the current budget; and
WHEREAS, Spending cuts will affect not only education,
transportation, and other vital state services; state spending cuts
also undermine potential growth by removing dollars that would
otherwise be spent on goods and services produced or delivered in
the state; and
WHEREAS, in addition to the funds for the Unemployment
Compensation Fund, Texas would benefit from provisions of the
American Recovery and Reinvestment Act of 2009 designed to preserve
and create jobs, provide investment in technology, transportation,
energy efficiency, environmental protection, and infrastructure,
and to minimize or avert reductions in essential services; and
WHEREAS, with oil and gas prices and exports declining, Texas
can expect to feel the effects of the recession more sharply; it is
essential that the state quickly take advantage of all recovery
funds available from the federal government in order to lessen the
impact of the current economic downturn and prepare the foundation
for long-term growth and prosperity when the national economy
recovers; and
WHEREAS, it is incumbent upon the Legislature, as the elected
representative body charged with protecting all Texans' interests,
to take initiative to ensure the prosperity of state citizens and
assist them in this time of national financial crisis; now,
therefore, be it
RESOLVED, that the 81st Legislature of the State of Texas
does hereby certify 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, to mitigate the effects of the
nation's recession in the State of Texas and provide necessary
assistance to its citizens during this economic downturn; and be it
further
RESOLVED, that the 81st Legislature of the State of Texas
does hereby certify its intention to accept any funds that may be
available to the state under the American Recovery and Reinvestment
Act of 2009 that are not accepted for use by the Governor in
accordance with Section 1607 of that Act; and be it further
RESOLVED, that copies of this resolution be furnished to
President Barack Obama, the Speaker of the United States House of
Representatives, and President of the United States Senate, members
of the Texas Congressional Delegation, Governor Rick Perry, and to
the members of the Capitol Press Corps.