The $26.1 Billion State Bailout

Statement

This week in Washington, Speaker Nancy Pelosi halted the six-week District Work Period to hold a one-day special session. On Tuesday, the House of Representatives reconvened to consider a $26.1 billion State Bailout bill that passed the Senate last week. This massive $26.1 billion legislation creates a $10 billion "Education Jobs Fund," and extends the higher Medicaid Federal Medical Assistance Percentage (FMAP) rates, costing the American taxpayers $16.1 billion.

Democrats will likely return to their congressional districts for the remainder of the August recess praising this bill, signed into law by President Obama on August 10, 2010, as job-creating legislation. Unfortunately, part of the $26.1 billion is offset with $9.8 billion in new taxes on businesses over the next ten years that will only stifle employment and job creation.

Several American business and employer groups, that represent tens of millions of employees, expressed their strong opposition to the bill. The U.S. Chamber of Commerce sent a letter to the Members of the House of Representatives stating the Chamber "strongly opposes H.R. 1586, which would impose draconian tax increases on American worldwide companies that would hinder job creation, decrease the competitiveness of American businesses, and deter economic growth." The new tax hike is estimated to eliminate over 141,000 private sector jobs on top of the 3 million jobs already lost since the so-called "stimulus" bill.

The $10 billion "Education Jobs Fund" resembles the "State Fiscal Stabilization Fund," which was included in the original "stimulus" package and distributed $53.5 billion to supplement state's education budgets. The "State Fiscal Stabilization Fund" was also proclaimed to be a job-creating bill; however, states used the funding largely to subsidize existing obligations as opposed to spurring job growth. Now more than ever, Congress should retire from the business of bailouts, where it rewards irresponsible spending, and begin to focus on creating common-sense solutions that will stimulate the economy and put Americans back to work.

Among the many concerns raised regarding the State Bailout bill, one of particular concern is language that specifically singles out Texas . Texas will only receive its portion of the "Education Jobs Fund" if it maintains education funding at or above current spending levels for two additional fiscal years beyond 2011, putting the state legislature at a disadvantage when creating the yearly budget. The other 49 states are only imposed with a one-year requirement. As a response to this discriminatory language, I joined 21 of my colleagues in sending a letter to Speaker Pelosi requesting that the language be removed from the bill. To force this upon the state of Texas would be a violation of the Texas Constitution and unfairly punishes Texas students and teachers.

Border Security

On Tuesday, the House of Representatives also debated the Emergency Border Security Supplemental Appropriations Act (H.R. 6080). The bill appropriated $600 million in emergency spending to enhance border security efforts and to train and hire approximately 1,500 border enforcement agents. Securing the border is the first step in tackling the larger problem of illegal immigration, and I support this legislation. The bill passed unanimously in the House on Tuesday, in the Senate on Thursday, and President Obama signed the bill into law today. I applaud these efforts because I believe that securing the border is essential in combating illegal immigration.

Unfortunately, the Majority failed to bring forward the annual Homeland Security appropriations bill, which would have funded border security through the regular order. The Majority's insistence that emergency border security legislation pass during August recess, feels like political gamesmanship -- giving the Majority the opportunity to go back home to their congressional districts and claim that they are strong on border security, while additionally giving them license to move forward with an amnesty bill. It is my hope that when Congress reconvenes in September, the Majority will finally produce a budget and an appropriations bill to adequately fund all efforts to increase borders security and enforce immigration law.

Taxpayer Hero Award

On Tuesday, I was named a "Taxpayer Hero" by the Council for Citizens Against Government Waste (CCAGW), receiving a 98 percent score for my voting record in the first session of the 111th Congress (2009).

This year marks the 21st anniversary of the CCAGW identifying members of Congress who vote in the interest of taxpayers. The 2009 Congressional Ratings evaluated 120 votes in the House, including votes against the failed "stimulus," government-run healthcare, and "cap-and-trade".

In this 111th Congress, the American people have witnessed a spending binge by the Majority fueled by policies of more taxing, spending, and borrowing. Our nation needs responsible conservative leaders who will fight against the Majority's reckless agenda. As always, I remain committed to championing fiscal responsibility and supporting common-sense policies that promote job creation and encourage economic growth.

The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.

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