Tuesday, March 29, 2011

Michigan Becomes First State To Curtail Jobless Aid

WASHINGTON -- Gov. Rick Snyder signed controversial legislation on Monday, making Michigan the first state in the country to reduce unemployment insurance for those who lose their jobs through no fault of their own. Starting in January, laid-off Michiganders will be eligible for 20 weeks of jobless aid, instead of the standard 26 weeks.


Snyder, a Republican, said the change was necessary to win political support in the Michigan legislature for maintaining the state's eligibility for the federal Extended Benefits program, which provides 20 weeks of benefits for the long-term unemployed. Without the bill, an estimated 35,000 Michiganders would not have received their EB checks in April.

"These benefits are a lifeline for many Michigan families who are struggling in this challenging economy," Snyder said in a statement. "Cutting them off so abruptly would have jeopardized the well-being of those who are trying hard to find work."

EB kicks in for people who exhaust 53 weeks of federal Emergency Unemployment Compensation and 26 weeks of state benefits. Opponents of the bill say the EB measure was not worth reducing the state benefits. Advocates of unemployment insurance fear other states will follow Michigan's lead.

Michigan Democrats in the U.S. Senate and House of Representatives asked Snyder in a letter on Monday to veto the bill, saying the change would "turn back the clock on 50 years of needed protections for the unemployed in Michigan."

Read on.


(Read the bill HERE)

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