LANSING – Unemployed persons in Michigan will qualify for jobless benefits for as long as 79 weeks under three bills signed Monday by Gov. Jennifer Granholm, who also called on the Legislature to pass two other bills to give benefits to people who do not qualify under current law, a move that would bring another $138 million in federal funds to the state.
While the bills signed by the governor, which allow unemployed persons to claim up to seven more weeks of benefits, enjoyed wide support, the two pending bills are opposed by many, including business leaders, who fear the long-term costs outweigh the temporary benefits.
The bills (HB 4785 and HB 4786 ) provide benefits to persons who are not actively seeking employment but who are enrolled in job training programs and to some part-time workers. They have not yet had any hearings in the House.
“I am strongly urging the Legislature to pass (these bills),” Granholm said. In the current economic climate, she said one benefit is that jobless workers attempting to improve their skills to get new jobs would not have to go “through the shenanigans” of looking for work.
The bills providing additional weeks of benefits (HB 4668 , HB 4669 and SB 399 , PA 18, PA 20 and PA 19) are expected to help about 200,000 persons by year’s end. The seven weeks are on top of 13 weeks provided under the extended benefit program, 26 weeks in state benefits and 33 weeks of federal emergency benefits.
The extra benefits will be covered by federal stimulus funds.
“In these extremely difficult times, I am pleased we can provide some additional financial help to unemployed workers in the state. These additional unemployment benefits will not only help families in meeting their basic needs, but they also provide an economic boost to Michigan businesses who sell the goods and services families need,” Granholm said.
She had already signed a contract earlier this year raising the maximum benefit to $387 from $362 per week.
The Michigan Chamber of Commerce opposes the two pending bills because the federal money comes with strings that the changes must be permanent.
Wendy Block, director of health policy and human resources for the Chamber, said employers cannot shoulder the additional $69.7 million a year the bills would cost when the federal funds run out given the economy and increased taxes that are already coming in order to repay a debt the unemployment systems owes to the federal government.
The debt repayment, which is to begin next January, will cost businesses $22.50 per worker.
“We feel at this time, given the economic situation, passing legislation that raises taxes on employers is not appropriate,” Block said. “It’s time to be focusing on cutting costs on the unemployment program so we can deliver benefits to people in need of benefits.”
But Rep. Richard Hammel (D-Mount Morris Township), sponsor of one of the bills, said the economy has made more aid to workers an urgent issue. “This plan will help displaced workers upgrade their skills and move quickly into jobs in growing fields,” he said. “This is an investment in Michigan that will help us jumpstart our state’s economy by providing businesses with the high-quality workers they need to thrive.”
Granholm said the job training programs that workers would use are not getting ramped up fast enough because funds are moving more slowly than she would like, but added applications should be on file so the jobless can begin retraining as quickly as possible when slots do open.
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