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Michigan Democrats wanted to continue offering 26 weeks of unemployment in the state instead of 20.
Republicans didn’t want companies to cover the costs.
The Michigan legislature therefore compromised, promising to put $ 220 million from taxpayers into the employer-sponsored Unemployment Trust Fund to pay.
Gov. Gretchen Whitmer vetoed the $ 220 million, saying it was needed elsewhere, but it also meant cutting the extra six weeks of benefits.
“It’s the real irony, the people who are immediately injured are unemployed people whom the governor says she cares about,” said Rich Studley, president and CEO of the Michigan Chamber of Commerce.
The move does not affect those who are currently unemployed in the state. Anyone who started receiving unemployment before 2021 is required to receive 26 weeks of state benefits, a spokesperson for the Unemployment Insurance Agency said.
But for anyone who starts unemployed in 2021, it will be limited to 20 weeks of state unemployment. Thanks to the $ 908 billion federal COVID-19 assistance program, many people will be entitled to an additional 24 weeks of federal unemployment. Some are also eligible for an additional 20 weeks of extended benefits.
The only reason many are unemployed is because Whitmer took their jobs with his shutdown orders, said Gideon D’Assandro, spokesperson for Speaker-elect Jason Wentworth, R-Clare.
“People were counting on these benefits and the legislature delivered,” D’Assandro said. “But, because of the veto, they are now in danger and people trying to plan for the new year are confused and concerned about what the future holds.”
Democrats say there is still time to legislate to have 26 weeks of unemployment benefits instead of 20 – since those affected by this new change will not run out of benefits until the 21st full week of 2021, which is at the end of May.
Ideally, Democrats want 26 weeks of unemployment to become permanent in Michigan, said Sen. Curtis Hertel, D-East Lansing, who sponsored the Extended Unemployment Bill. Michigan is one of the few states that gives less than 26 weeks of unemployment – a change made under the administration of former Governor Rick Snyder to save businesses money.
“If what Republicans are saying is they won’t support 26 weeks of unemployment unless they get a corporate tax cut, then this can be a tough pill for people to swallow Hertel said.
Hertel also said there was still time to spend another credit similar to the $ 220 million in the trust fund, which would activate the 26-week extension.
“In the law now, it says 26 weeks, but there are conditions to get there and the legislature can choose to take these measures,” he said. “It could be the $ 220 million or something. The legislature has many options to adopt. “
Senator Jim Stamas, R-Midland, who wrote the COVID-19 relief plan, said either of Hertel’s options was not necessarily attractive.
“With the governor vetoing the money that would go to the trust fund, that leaves a very difficult path for any kind of further negotiation with the governor at this time,” he said. “You never say never, but I don’t know which way is right now, and I would personally oppose a permanent extension to 26 weeks.”
Whitmer berated the attempt to spend $ 220 million in general funds to support the trust fund, she said at a press conference on Tuesday.
“General fund dollars are to be used to fund essential services like vaccines and PPE, not to give tax breaks to big business,” Whitmer said in a press release.
The Michigan Unemployment Trust Fund had $ 732 million on Monday – well below the fund’s $ 4.6 billion at the start of the pandemic. When the fund drops below $ 2.5 billion, business owners need to put more into it.
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