Stimulus sized up as a 'cocaine dealer'

AUSTIN (KXAN) - Business associations in Texas side with Gov. Rick Perry in rejecting a part of the stimulus package, which would require Texas to expand who qualifies for unemployment benefits.

"It's like a cocaine dealer," said Bill Hammond,  Texas Association of Business president. "He gives you your first bit of cocaine for free, and then you are addicted and have to pay for it the rest of your life."

Hammond said expanding who qualifies for unemployment will cost employers millions of dollars in the coming years.

"Employers are 100 percent responsible for unemployment tax," said Hammond. "This isn't the time to put more of a burden on employers."

Hammond and Perry are meeting opposition from other groups in Texas who said reforming unemployment benefits are long overdue.

"We are 50th in the country when it comes to unemployment benefits," said Don Baylor, Jr., with the Center for Public Policy Priorities. "We are way below other states when it comes to awarding unemployment benefits. Making these changes that the stimulus plan requires would only expand our program by about 2 percent."

Both Hammond and Baylor testified before the Technology, Workforce and Economic Development Committee meeting chaired by Austin Democrat Rep. Mark Strama.

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