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Two Democratic state lawmakers are preparing legislation that would restore unemployment benefits cuts recently signed into law by Governor Rick Snyder.  Snyder signed legislation to extend federal jobless benefits, but the bill also contained a provision shrinking state unemployment benefits from 26 to 20 weeks next year.  

Republicans lawmakers pushed for the jobless benefits cuts, saying it will reduce the burden on Michigan businesses, which pay into the state unemployment insurance pool. Jim Ananich is a state representative from Flint.   He’s introducing legislation to restore those benefits.  

“You know I’m hopeful that they will see the error of their ways and see that now is not a time to be taking money out of people’s pockets.”

Ananich hopes to introduce his bill next month.

Two days ago a friend of mine called me in a semi-panic. Her unemployment benefits were about to run out, and she had eighty-seven dollars to her name. She wasn’t going to be able to make the modest payment on her small house, and didn’t know what to do. Nor did she understand what was going on in the legislature. Someone had told her that the governor was signing a bill to extend unemployment benefits. Somebody else told her he was going to shorten them. Which, she wanted to know, was it?

Well, both, I said. The governor signed a bill Monday that extends eligibility for federal extended unemployment benefits for up to ninety-nine weeks.

That’s only, however, for people like my friend Karen, who already is collecting unemployment.

Next year, however, things will change drastically. Any Michigander who loses his or her job after January 15, 2012 will only be eligible for state unemployment benefits for a maximum of twenty weeks. That’s less than five months.

For years, jobless workers in Michigan have been able to collect benefits for a maximum of twenty-six weeks, or six months. They can collect them for longer periods of time now because the federal government decided to temporarily provide benefits, because of the lingering effects of the recession. Those effects are still hanging on in Michigan, where unemployment is still more than ten percent. Economists expect that to come down a little by next year, but we’re likely to continue to be a long way from full employment. What that means is that for many people, twenty weeks is not going to be enough time to find a job.

So why is our government making it tough for jobless workers? Interestingly, nobody is really coming forward to defend this. Governor Snyder said he signed this bill because it was necessary to extend benefits for those who are jobless now. He said he would have been happy to leave eligibility at twenty-six weeks, and blamed the legislature for shortening the time period. Why did they do this? Well, nobody is rushing forward to claim credit.

(Courtesy of the Michigan governor's office)

Update 11:33 a.m.:

Michigan Congressman John Dingell (D) has released a statement condemning Snyder's signing of the new law. In a written statement, Representative Dingell said:

"This law is another in a long string of Republican assaults on working families and unions. In one fell swoop, the Republicans in Lansing have made it so that people in Michigan receive state employment benefits for a shorter period of time than anywhere else in the nation. Michigan does face a budget crisis, but it cannot be solved by declaring war on the unemployed, who - now more than ever - need all the help they can get in order to support their families and find new jobs."

Original Post 10:52 a.m.:

Governor Rick Snyder today signed legislation extending jobless benefits. The law will allow 35,000 Michiganders to receive an addition 20 weeks of federal jobless benefits. Their benefits would have expired April 1st. In a written statement, Snyder says: 

"These benefits are a lifeline for many Michigan families who are struggling in this challenging economy... Cutting them off so abruptly would have jeopardized the well-being of those who are trying hard to find work. Now that we have continued this safety net, we must renew our focus on improving Michigan's economic climate. We will continue driving forward with our job-creating reforms so that fewer people need to rely on unemployment benefits."

Democrats pushed for the extension, but many eventually opposed the final version. The final legislation was amended to reduce the number state jobless benefits from 26 to 20 weeks.

Republicans say reducing the length of state benefits will reduce the burden on state businesses that pay into the state jobless benefits pool. By cutting the number weeks of state jobless benefits,  future unemployed Michiganders will be eligible for fewer weeks of additional federal unemployment benefits.  

According to the state Department of Energy, Labor and Economic Growth, the average unemployed Michigander uses about 19 weeks of jobless benefits. Michigan's unemployment rate declined to 10.4% in February. There were slightly less than a half million people in Michigan without a job who wanted one.  

Michigan's jobless rate is still about 2 percentage points higher than the national average. But the state's jobless rate has been declining since September 2009.

(Flickr swanksalot)

UPDATE 1:24 p.m.:   A spokeswoman for Governor Rick Snyder says the governor expects to sign the bill which would reduce the number of weeks jobless Michiganders will be able to recieve state unemployment benefits. Spokeswoman Sara Wurfel says:

"(The governor's) priority was to ensure no one receiving unemployment benefits was cut off abruptly. It's a lifeline for Michiganders right now - we simply can't risk tens of thousands of Michigan's families immediately losing their benefits in April.  He’s continuing to work tirelessly to help turn around Michigan's economy and create more and better jobs so that we can hopefully reduce the need for unemployment in the first place."

ORIGINAL POST 12:17 p.m.: Democrats are calling on Governor Rick Snyder not to sign legislation that will reduce state unemployment benefits to Michiganders from 26 to 20 weeks. The Republican controlled legislature passed the benefits  cut Wednesday, as part of  a bill to continue extended federal jobless benefits to Michigan’s unemployed.

Royal Oak Congressman Sander Levin says the governor should veto the bill that will eventually reduce benefits for Michigan’s most in need.  

"This is the worst time to do this for Michigan workers.  I think it is reckless.  It’s inexcusable.”

Cutting state benefits will reduce the cost to Michigan businesses that must pay into the unemployment fund.  Cutting state unemployment benefits by 6 weeks could also reduce federal unemployment benefits by up to 16 weeks for jobless Michiganders. The Michigan Chamber of Commerce says the change will save state businesses $300 a year starting in 2012.

Levin says it’s unfair to shorten the period unemployed Michiganders can receive jobless benefits. 

“The governor can say to the legislature 'Get back.  Do what needs to be done here.  And stop the hijacking.'”

Federal jobless benefits for 35,000 unemployed Michiganders will expire April 1st  if Snyder vetoes the bill.

Legislators debating extending jobless benefits

Mar 23, 2011

People who file for unemployment benefits next year would be eligible for fewer weeks of payments under a Republican measure approved by the state Senate. The Legislature must approve a jobless benefits package this week in order for the state to receive federal assistance for the program.

Thirty-five thousand Michiganders stand to lose their benefits if the legislature does not agree to the extension by April 1st. 

Democratic state Senator Tupac Hunter says Republicans are using the opportunity to undercut benefits for people who seek the payments in the future.

“This is 100 percent federally funded, we have an opportunity to address that today, and I think that we’ve chosen political games over helping our workers across this great state.”  

Republican state Senator Tom Casperson says the additional benefits would put too much strain on businesses. 

“Putting people into jobs is the way to fix the problem. But we don’t get there when every time we open our mouths we demonize the very job providers that are going to provide the jobs for us. This is trying to offer an opportunity for both sides; a safety net and add to the unemployment, and a fairness to the business people paying the bill.”

The bill was passed and now moves to the state House for final approval.

(Flickr ziggy fresh)

Michigan’s unemployment rate dropped slightly in February. Michigan’s seasonally adjusted unemployment rate declined by 3 tenths of one percent last month to 10.4%.

The state’s jobless number was still one and a half percentage points above the national unemployment rate of 8.9%.  

Michigan’s unemployment rate has been falling since September 2009. And last month, the number of jobless Michiganders fell below a half million for the first time since November 2008.

(Flickr Steve Rhodes)

The unemployment benefits of 35 thousand jobless Michiganders are about to expire.  There is some debate whether the state should act to extend their benefits by another 20 weeks.    The debate is between those who say the benefits are critical to jobless workers and business groups that say they don’t want to be forced to pay for those benefits.  The clock is ticking.  

Khalilshah / Flickr

Michigan's unemployment rate continued in decline in January to 10.7 percent. That's the lowest it's been in more than two years. And, it's three percentage points lower than the same time last year: the jobless rate in January 2010 was 13.7 percent.

The national jobless rate in January of this year was 9.0 percent.

Steve Carmody / Michigan Radio

From General Motors adding another shift at the Flint Assembly plant to expansion in the city's medical and echnology centers, Flint's job picture is brightening.

Flint city leaders say their community posted one of the ten biggest drops in unemployment in the U.S. over the last 12 months.

Between December 2009 and December 2010, Flint's jobless rate fell from 16 percent to just under 12 percent.
Flint Mayor Dayne Walling says the city helped create or keep mare than a thousand jobs by encouraging entrepreneurial businesses.

For everybody who's left, there's a project out there that kept a job here too. That?s the other part of the story. It may not be a new job. It's not someone who's newly employed. But there are another 500 or 1000 people who would have left here if these projects wouldn't have been successful.

This all builds on what our president said in his State of the Union, that we need to create jobs and industries of the future by doing what America does best.  Investing in the creativity and innovation of our people.

Walling concedes people leaving Flint also helped improve the city's unemployment rate.
Flint's unemployment rate is still above state and national levels.

Khalilshah / Flickr

Michigan's unemployment rate dropped in December to 11.7 percent. But, as Rick Pluta reports, the decline in the jobless rate was due mostly to people who have stopped looking for jobs:

Michigan’s unemployment rate dropped steadily throughout 2010. But there are still 555,000 people in Michigan who are out of work and looking for jobs. Half of them have been looking for six months or more.

There was little new hiring last month. The number of people who simply stopped looking for work is the biggest reason for the decline in the jobless rate. The state Department of Energy, Labor, and Economic Growth says the number of people who say they are available to work fell by 37,000.

When people who are looking for jobs, those who’ve quit looking, and part-time workers who’d like to be full-time are rolled together, Michigan’s rate of unemployment and under-employment is 21 percent.

Michigan’s unemployment rate in 2010 was 13.6 percent. That’s a drop of half a percentage point from the 2009 average.

One economist says the end of jobless benefits for thousands of Michiganders should not have a big effect on the number of jobs being filled.

 More than 180 thousand people in Michigan will see their unemployment benefits expire between now and April, unless Congress agrees to grant another extension. 

Kenneth Goldstein is with the Conference Board, a business research group.   He says there are few real new job options,  either full or part time for the ‘hard-core’ unemployed.

Michigan congressman Dale Kildee expects congress will approve extending jobless benefits for the long-term unemployed next week. 

An extension would allow people who’ve been receiving jobless benefits for more than 26 weeks to continue to receive financial aid.   The current extension expires next Wednesday.    Hundreds of thousands of unemployed Michiganders will stop receiving unemployment checks unless an extension is approved. 

Jobless
Photo by Khalilshah/Flick

Michigan's jobless rate continued its slow, but steady, decline in October.  The state's unemployment rate in October was 12.8%.  It's the first time the jobless rate was been under 13% since March 2009, according to the Associated Press. The state's jobless rate in October of 2009 was 14.4%.

The national unemployment rate for October was 9.6%.

 Time is running out again for many Michiganders living on unemployment benefits.

 Hundreds of thousands of Michiganders have spent nearly two years surviving on unemployment checks as the state struggles with a double digit jobless rate.

But time may be running out for those benefits.  Congress has passed several extensions but may not this time. 

Norm Isotello is with the state department of Energy, Labor and Economic Growth.    He concedes there is an argument that extended benefits may get in the way of people looking for work...but

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