Gov. Rick Perry gave his press conference rejecting the stimulus money from a hardware store in Houston.

Gov. Rick Perry announced Thursday at a press conference in Houston that he will reject the $550 million in federal stimulus funds designated to support unemployment insurance.

Perry said accepting money would only increase the burden of Texas employers, since they are the very ones who are driving our economy.

"Thousands of employers, all across this great state who carry our economy on their back ... the last thing they need is for government to burden them with higher taxes and with expanded obligations," he said.

Perry pointed to a need to prevent federal government from interfering with state spending.

	Web Extras
•Facts: Unemployment Insurance Stimulus, www.rickperry.org •Check out this map to see which states have accepted funds and examine the certifications they have submitted. •Read the letter from Rick Perry to Obama •A map of the estimated job effect with stimulus •Read Perry's press conference remarks •Thomas Friedman: A truly stimulating economic strategy, New York Times columnist

"The new administration wants to force this upon Texas. Had Washington been watching the blueprint of Texas for the past eight years, I suggest to you that we would be in a lot better shape," Perry said.

Perry said the bill will change the definition of unemployment and it could "strangle an economy that leads the nation."

"Take this money and when you take it, we're forcing you to change," Perry said. "We don't want you in Washington telling us how to do our business here in Texas."

		WATCH THE VIDEO
	Stimulus rejection News 8's Catie Beck shares reaction following the governor's announcement.

Perry alluded several times during the conference that he is a fiscal conservative. Houston is the hub of Perry's conservative support, but at the Capitol in Austin, not all lawmakers are supportive of his decision.

There is concern among political pundits that Perry's rejection of stimulus funds is a maneuver to bolster his platform for next year's primary race in March.

"We have all these people losing their jobs," Rep. Jim Dunnam, D-Waco, said. "It's just unbelievable."

The federal stimulus package would expand Texas unemployment insurance to those who work 30 hours a week or more instead of the 40 hour requirement that's currently set.

"We have made a decision that part-time employees are not eligible for unemployment insurance," Perry said.

Some senators supported the governor's decision.

"It's the Obama administration telling the State of Texas how we should run our state, and that's why I support the governor in not taking the money," Sen. Dan Patrick, R-Houston, said.

Representatives with districts nearing 10 percent unemployment rates cannot see the sense. They said Perry is acting to protect his own job, not Texans who have already lost theirs.

"[...]For partisan reasons, having to do with his gubernatorial race against Kay Bailey Hutchison is just obscene," Dunnam said.

Perry said Washington would have sent money with no strings attached if it was concerned about Texans.

Lawmakers working on the stimulus decisions pointed out that the rejected money will go to another state.

"Frankly, it's our money, and we ought to get it," Rep. Jim Pitts, R-Waxahachie, said.

Several lawmakers said they intend to. Perry said if they do, it might strangle an economy that leads the nation.

	Reactions
• State Rep. Garnet Coleman, D-Houston, criticized Gov. Perry for playing politics with the future of Texans by rejecting the unemployment insurance component of the stimulus package. "Gov. Perry ran Texas into the ground by suspending the tax on business that goes to the unemployment fund," Coleman said. "That short-sided act has helped to deplete the fund by October." … "The governor is costing Texas business owners close to $1 billion." • State Sen. Kirk Watson, District 14, said Perry's refusal to accept unemployment money shows "the height of denial" about challenges facing Texas. "Refusing this money is not merely short-sighted or economically questionable – it demonstrates the height of denial about challenges confronting the state and its people. Now more than ever, we need a plan for coping with Texas' growing unemployment problem, and we need resources to pay for it." • Sen. Leticia Van de Putte, D-San Antonio, responded to Perry's refusal of funds for the unemployed by saying the decision will harm Texan families. "Gov. Perry's decision will harm many Texas families. With 26,000 Texans filing new unemployment claims each week, Texans need help now. I am amazed that Gov. Perry would put partisan interests above the interest of already unemployed Texans and those who will unfortunately lose their jobs due to the economy."

	Unemployment Rates
State of Texas unemployment rate: 6.4 percent (seasonally adjusted) Current unemployment rates in metropolitan areas: 1. Dallas 7.4 percent 2. Houston 6.2 percent 3. San Antonio 6 percent 4. Austin 5.8 percent (Note: Figures are not seasonally adjusted) Cities with the highest unemployment rates in Texas currently: 1. Eagle Pass 17.6 percent 2. Port Arthur 13.6 percent 3. Texas City 10.8 percent 4. San Juan 10.4 percent 5. Baytown 10 percent 6. Brownsville 9.7 percent (Note: Figures are not seasonally adjusted) Source: Texas Workforce Commission