Michigan Democrats wanted to continue offering 26 weeks of state unemployment instead of 20.
Republicans did not want businesses to cover the costs.
The Michigan Legislature therefore compromised and promised to pay $ 220 million to taxpayers in the Unemployment Fund to pay for it.
Government Gretchen Whitmer has vetoed the $ 220 million, saying it is needed elsewhere, but it also means the extra six-week benefits must be levied.
“This is the real irony. The people who are immediately hurt are unemployed workers that the governor says she cares about,” said Rich Studley, president and CEO of the Michigan Chamber of Commerce.
The move does not affect those currently undertaking unemployment. A spokesman for the Unemployment Insurance Agency said that anyone who started receiving unemployment before 2021 could receive 20 weeks of government benefits.
But for anyone starting unemployment in 2021, they will be limited to 20 weeks of unemployment by the state. Thanks to the $ 908 billion federal COVID-19 assistance package, many people will be eligible for another 24 weeks of federal unemployment. Some are also eligible for 20 weeks extra extended benefits.
The only reason many people are unemployed is because Whitmer took their job with her orders to quit, said Gideon D’Assandro, spokesman for election member Jason Wentworth, R-Clare.
“People are counting on the benefits and the legislature is delivering,” D’Assandro said. “But because of the veto, they are in danger now and people trying to plan for the new year are confused and worried about the future.”
Democrats say there is still time to pass legislation to have 26 weeks of state unemployment benefits instead of 20, as those affected by this new change will only miss the 21st full week of 2021, end of May.
Ideally, the Democrats want the 26 weeks of unemployment to become permanent in Michigan, said Sen. Curtis Hertel, D-East Lansing, who sponsored the bill to extend unemployment. Michigan is one of only a few states to provide less than 26 weeks of unemployment – a change made during the reign of former government Rick Snyder to save businesses money.
“If Republicans say they will not support 26 weeks of unemployment unless they get a corporate tax cut, it could be a difficult pill to swallow,” Hertel said.
Hertel also said that there is still time to give another grant similar to the $ 220 million to the trust fund, which according to the statue will activate the 26-week extension.
“In the law it now says 26 weeks, but there are requirements to get there and the Legislature can choose to take the actions,” he said. ‘It could be the $ 220 million or something. The legislature has many options to pass. ”
Sen. Jim Stamas, R-Midland, who drafted the COVID-19 aid plan, said one of Hertel’s options is not necessarily attractive.
“With the governor vetoing the money that will go to the trust fund, this leaves a very challenging path to any further negotiations with the governor at this moment,” he said. “You never say never, but I do not know what the path is, and I would personally oppose a permanent extension to 26 weeks.”
Whitmer rebuked the attempt to spend $ 220 million in general fund money to push the trust fund up, she said at a news conference on Tuesday.
“General funds should be used to fund essential services such as vaccines and PBT, not to give tax exemptions to large enterprises,” Whitmer said in a news release.
As of Monday, Michigan’s unemployment trust fund had $ 732 million – far less than the $ 4.6 billion in the fund at the start of the pandemic. When the fund falls below $ 2.5 billion, business owners have to pay more for it.
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