States are taking a closer look at the stimulus package, sifting through the provisions and stipulations that it contains and rejecting funds.

The likely culprits are among those sending the money back; Bobby Jindal Governor of Louisiana, Mark Sanford Governor of South Carolina and Rick Perry to name a few but there are other states that might surprise you.

California’s economy has been flailing since the start of the economic slowdown yet the Legislature has decided to take a pass on accepting part of the stimulus package headed their way. The LA Times reports that Republicans in the state Assembly on Monday defeated a bill to spend more than $2.5 billion in federal stimulus money for unemployment benefits.

Conservatives in the Assembly cited several reasons for rejecting the money including not having enough time to assess how the reforms, called for in the stimulus bill, would affect taxpayers after the funds were spent.

One week ago began the unemployment insurance battle in Texas pitting a rogue subcommittee and its chairman Jim Dunham against Rick Perry.

If California is prepared to reject these funds especially in the economic state that they are in this should effectively be a non issue in our state. Of course there is a “but.”

Proponents of accepting the stimulus funds have been out advocating for sun setting the reforms to our UI laws. However this is not an option. The inability to control the limits on the UI code changes was at least part of the reason Utah has also rejected these funds.

Legislators in Utah did take time to explore whether they could include a sunset date in the revisions, but were told they could not.

Your legislator needs to hear from you and we are here to help. Write to Stop UI Growth

These stimulus funds will not help Texas moving into the future but will increase the burden of taxation on our businesses which will equate to fewer jobs and an anemic economy.

Daniel Greer

Daniel Greer is the Director of Innovation for Texas Scorecard.