Critics assail Perry's rejection of stimulus money

AUSTIN, Texas (AP) - Lawmakers are calling Texas Gov. Rick Perry's rejection of more than $500 million in federal stimulus money counterproductive and politically motivated.

They spoke out Friday, a day after Perry announced he wouldn't accept the portion of $17 billion in federal money that would pay for state unemployment benefits.

Perry argues that accepting the money would require the state to keep funding expanded unemployment benefits. He says that would in effect raise unemployment taxes on businesses.

The state's unemployment fund is expected to be insolvent by fall.

The stimulus law stipulates that the Legislature can still try to accept the funds, though they risk gubernatorial veto.