According to the USA Today Texas Governor Rick Perry is declining stimulus money because receiving such funds would result in the need to raise taxes on businesses.
Texas which has a 6.4% unemployment rate, was expected to receive over $500 million dollars, but the Governor was hesitant to be forced into covering part time workers with unemployment insurance, because once the stimulus package were to run out--the state of Texas would then need to either reduce benefits or raise taxes.
According to the article:
Led by Republican Governors Association chairman Mark Sanford of South Carolina, a group of conservative GOP governors has rejected or considered rejecting the unemployment money or other funding from the $787 billion stimulus package. Bobby Jindal of Louisiana, Haley Barbour of Mississippi, and Bob Riley of Alabama also have rejected the unemployment money.