Appealing unemployment decision

What is the name of your state (only U.S. law)? Texas

I was laid off on December 31,2008. I have the separation agreement given to me by my employer that states they would not contest my application for unemployment . I also have a letter from my General manager stating I was let go through no fault of my own but due to budget concerns.
On the refusal letter it states my employer told the unemployment office that I left for personal reasons. Is it legal for them to outright lie to a governmental agency? I am planning to appeal this decision and have been told that I should have a lawyer represent me. Is this true? and how much does this cost and can I get any of that back from my employer as it is their lie that is causing me to incur this expense? Thank you.What is the name of your state (only U.S. law)?

I don't think you need a lawyer. You have all the proof you need that you were laid off. And besides, the burden of proof is on the employer to prove that you quit.