By: Turner of Harris H.C.R. No. 93

HOUSE 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.