| 1 | 1 | | 81R13366 BPG-D |
|---|
| 2 | 2 | | By: Davis, Wendy S.R. No. 447 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | R E S O L U T I O N |
|---|
| 6 | 6 | | WHEREAS, Since this recession began, a staggering number of |
|---|
| 7 | 7 | | Americans have lost their jobs, and the heavy burden of |
|---|
| 8 | 8 | | unemployment is causing the economy to weaken further; and |
|---|
| 9 | 9 | | WHEREAS, The American Recovery and Reinvestment Act signed by |
|---|
| 10 | 10 | | President Barack Obama on February 17, 2009, appropriates $787 |
|---|
| 11 | 11 | | billion in federal funds to jumpstart economic recovery; the |
|---|
| 12 | 12 | | stimulus package is designed to help economically devastated cities |
|---|
| 13 | 13 | | and states, to create or save some 3.5 million jobs, and to invest |
|---|
| 14 | 14 | | in infrastructure, green energy, and technological innovation; and |
|---|
| 15 | 15 | | WHEREAS, In order for the stimulus funds to have the greatest |
|---|
| 16 | 16 | | impact and to maximize the creation and preservation of jobs, they |
|---|
| 17 | 17 | | should be spent, as much as possible, on domestic materials, goods, |
|---|
| 18 | 18 | | and services; and |
|---|
| 19 | 19 | | WHEREAS, The Congressional Budget Office has noted that the |
|---|
| 20 | 20 | | most effective type of fiscal stimulus is one that directs money to |
|---|
| 21 | 21 | | people who are most likely to spend it quickly; thus, when a |
|---|
| 22 | 22 | | stimulus allows a United States household to purchase the items it |
|---|
| 23 | 23 | | needs, demand in this country is increased, and the initial |
|---|
| 24 | 24 | | stimulus sets in motion further periods of economic consumption in |
|---|
| 25 | 25 | | a process known as a "multiplier" effect; the degree of stimulus |
|---|
| 26 | 26 | | provided depends on how much of the resultant spending goes to |
|---|
| 27 | 27 | | purchase domestically produced goods, because if the additional |
|---|
| 28 | 28 | | consumption is satisfied by imported goods, the income of foreign |
|---|
| 29 | 29 | | producers rises, and the stimulus is essentially exported; and |
|---|
| 30 | 30 | | WHEREAS, The number of American workers drawing unemployment |
|---|
| 31 | 31 | | aid jumped to a record high of nearly five million in early February |
|---|
| 32 | 32 | | 2009, and this labor market deterioration is sending the economy |
|---|
| 33 | 33 | | into a deeper spiral; in order to maximize the effectiveness of the |
|---|
| 34 | 34 | | stimulus package at this crucial moment, it is imperative that the |
|---|
| 35 | 35 | | funds be spent domestically whenever practicable, using American |
|---|
| 36 | 36 | | tax dollars to amplify aggregate demand and create the greatest |
|---|
| 37 | 37 | | number of American jobs possible; now, therefore, be it |
|---|
| 38 | 38 | | RESOLVED, That the Senate of the 81st Texas Legislature |
|---|
| 39 | 39 | | hereby express its intent that funds provided to the State of Texas |
|---|
| 40 | 40 | | by the American Recovery and Reinvestment Act be spent, as far as |
|---|
| 41 | 41 | | practicable, on domestic goods, materials, and services. |
|---|