The Lt. Governor and leaders of the Senate and House announced their intention of not accepting the federal stimulus money associated with the expanded unemployment package. Accepting the stimulus money would have obligated the state to the expansion of unemployment benefits to part-time workers and other significant changes.

The federal stimulus money will cover the program for a limited time but after that, employers will have to pay increased assessments into the unemployment fund to make up for the “loss” of these "free" federal funds. Considering the promise President Obama is making to tax small businesses out of existence and the associated loss of jobs that will bring, it doesn't appear that adding more load to the wagon with a broken axle makes much sense

The decision to forgo these stimulus funds is an example of how the General Assembly should be evaluating the "free" money and is very responsible. Any funds that obligate the state, its taxpayers and businesses to pay additional fees or taxes after the “free” money is gone should be rejected.

Some are arguing that we are going to pay for the bill for this “free” money anyway so we should take it. The problem with that argument is that by accepting the stimulus funds that obligate the state to future expenditures results in state taxpayers and businesses to paying for the "free" money twice. Most people agree that paying double for something isn’t fiscally responsible.

The General Assembly continues to review opportunities to spend stimulus funds that do not require ongoing state expenditures. It is in these instances that taking the stimulus money makes sense. We will continue to keep you posted on this issue as it will impact the business climate in our state.