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House Dems push jump in state jobless benefits

Date Posted: December 23 2005

LANSING - There's yet a new package of bills from Michigan's Democratic House members that would increase unemployment benefits and extend those benefits by 13 weeks when the state's unemployment rate reaches 5 percent.

Michigan's unemployment rate was 6.1 percent in October, the most recent numbers available from the Michigan Department of Labor and Economic Growth. It hit a high of 7.4 percent in February.

"We need to stand up for our workers, especially when wealthy corporations outsource their jobs to other states and countries, or downsize their jobs out of existence," said House Democratic Leader Dianne Byrum (D-Onondaga). "Our working families are the backbone of our state. When they fall on tough economic times, we must stand up for them. Expanding unemployment benefits is the right thing to do for our workers who lose their jobs through no fault of their own."

House Democrats have raised the issue of raising and extending unemployment benefits in past years - but have met with little success in getting their legislation past the Republican-led state House and Senate.

The legislation would:

  • Extend unemployment benefits by 13 weeks when the state's unemployment reaches 5 percent.
  • Increase the weekly unemployment benefit to a maximum of $408 from the current $362 and tie future increases to inflation.
  • Increase the weekly benefit allowance for a dependent from $6 to $20 per week.
  • Increase the multiplier that determines benefits from 4.1 percent to 4.4 percent and increase the multiplier used to calculate the number of weeks a worker can receive benefits from 43 percent to 45 percent of the base-period wages.

    Jason Brewer, a spokesman for state Republican House Leader Craig DeRoche, said his boss "would not support the proposal," because the greater payouts to jobless workers "would jeopardize the solvency of the trust fund."

Still, Democrats may be able to swing some kind of a deal.

Michigan's unemployment benefits were last increased in 2002 from $300 to $362. If benefits had kept pace with inflation since 2002, unemployed workers would have received a maximum of $396 this year and a maximum of $408 in 2006.

"Low-wage earners are hit the hardest when they lose their jobs," said State Representative Doug Bennett (D-Muskegon), who proposed a bill to increase the multiplier. "Many of these workers have little to no savings because they're already scraping to get by. Increasing unemployment benefits for people who earn the least will help our workers survive until they find new jobs."