The National Employment Law Project said Wednesday that many jobless Michigan residents could lose their extended federal unemployment benefits soon unless the state legislature passes a bill allowing them to qualify for more.
In a press release the group said:
On April 2nd, an estimated 35,000 Michigan workers will face an abrupt end to their unemployment insurance. Due to the state legislature’s failure to enact a technical fix to Michigan’s unemployment insurance laws, people who have struggled unsuccessfully to find work the longest will lose as many as 20 weeks of federally funded unemployment benefits that would otherwise be available.
Michigan lawmakers can prevent benefits from lapsing if they act by March 24th, before they begin a two-week recess. Lawmakers could enact legislation after the break to restore the extended benefits retroactively, but the longer they wait to act, the longer workers will go without unemployment insurance…
Prior to December 2010, federal law permitted Extended Benefits in states where the unemployment rate for the three most recent months was at least 6.5 percent and 110 percent of the rate for the corresponding period in either or both of the two previous years. Most states on Extended Benefits will continue to meet the first requirement, but fail to meet the second condition. The problem is that unemployment has not remained this high for this long since the 1930s. Michigan is one of the first such states where unemployment far exceeds 6.5 percent but is lower than it was at the worst of the labor market downturn in 2009 and 2010.
In December, the federal government addressed this problem with legislation (P.L. 111-312) that enables a state to continue offering federally funded Extended Benefits as long as unemployment remains at or above 6.5 percent and is 110 percent of the rate for the comparable period three years ago, prior to when the labor market bottomed out. However, each state must enact conforming legislation to take advantage of the new federal rule. The Michigan legislature’s failure to do so is the only thing that stands in the way of unemployed workers being able to secure the benefits they, and the local economy, so desperately need—and that the federal government is underwriting.
Rep. Barb Byrum introduced an amendment to a bill that would have fixed this problem and allowed Michigan residents to access the full extended benefits allowed by law, but it was blocked by Republicans. Byrum issued a press release that said, “This is yet another slap in the face to our working families. In addition to trying to balance the budget on the backs of our families, House Republicans are now refusing to give our displaced workers the support they need to provide for their families until they get back on the job. This is about helping our displaced workers so that they don’t have to worry about choosing between buying food for their kids or paying their heating bills. If we do not act on this plan soon, tens of thousands of families will have an even heavier burden to shoulder in these tough times. Our residents deserve better.”