Congressman Sander Levin

Weathering the Storm

Even as we work to revitalize Michigan’s economy, I believe it’s critical that we do everything we can to help Michigan’s workers and families weather the current economic storm. With an unemployment rate that has risen to above 15%, our state has the highest jobless rate in the country.

I have worked to pass extensions of Unemployment Insurance (UI) benefits, increase funding for food assistance, reduce the cost of health care, and support our retirees. I will continue fighting to make sure that even as we work on getting our economy back on track, we also focus on helping people affected by the economic downturn.

Unemployment Insurance

Michigan is currently experiencing one of the most severe economic crises our state has seen. I hear from people in Michigan every day about the importance of unemployment insurance in helping them bridge this economic crisis.

A gentleman named Jim from Mt. Clemens contacted my office to express his support for the recent extensions in unemployment benefits. Jim has worked in the tooling industry his entire career, but was laid off at the start of the current downturn.He has sent out several hundred resumes and has received many responses. He has even been offered some interviews, but says the companies always call back to say they have instituted a hiring freeze. He scoffs at the idea some people express that an extension of UI benefits is a disincentive to find work. “That’s obviously someone who’s never been unemployed,” he says.

Unemployed people in Michigan are normally eligible for 26 weeks of regular UI benefits. However, in a severe economic downturn, these 26 weeks are often not enough to carry families across a gap of unemployment. For this reason, I have worked with my colleagues to pass extensions of unemployment benefits.

In June 2008, Congress passed the first 13 week extension of UI benefits. In November, 2008, I worked with my colleagues to successfully pass another 20 week extension for high-unemployment states. In the Recovery Package, Congress included full federal funding for the permanent state-based program, enabling Michigan to provide another 20 weeks of benefits. Most recently, Congress passed an additional extension of 14 weeks for people in all states, and an additional 6 weeks for people in high unemployment states like Michigan. I am working with my colleagues to make sure we continue eligibility for all federal extensions, which is currently set to expire at the end of the year. For information on your eligibility or to apply for benefits, please visit http://www.michigan.gov/uia. You can also call my office for assistance at 586-498-7122.

The Recovery Package also included a $25 per week increase in UI benefits for everyone receiving UI and waived the income tax on the first $2400 in UI benefits.

Updating Our Unemployment Insurance System to cover More Workers

Michigan’s regular unemployment program covers only 42% of unemployed workers. I fought to include a provision in the Recovery so there was incentive money on the table to encourage states to improve their unemployment eligibility rules and include more workers who have been laid off through no fault of their own.

Michigan qualified for the first third of the funds available because the state already allows workers to use their recent earnings to qualify for benefits and received $69 million from the Recovery Act. Two bills pending in the Michigan State Senate would enable more Michigan workers to qualify for unemployment insurance and provide Michigan an additional $138 million in federal funding. These bills, HB 4785 and HB 4786 extend benefits for people in training programs and allow people seeking part time work to qualify for unemployment benefits. The Michigan House passed the bills on May 6th, but the State Senate has failed to act.

These Michigan residents who would receive benefits under these bills have worked enough to meet the existing wage eligibility requirements, and I believe the state law should be changed to allow them to receive benefits when they need it the most.

Economists widely agree that unemployment benefits are among the most effective and quickest ways to strengthen the economy. Experts testified before Congress that every dollar of extended unemployment benefits generates $1.64 in increased economic activity.

Health Care

The rising costs of health care have severely outpaced wage increases in recent years. Because most people get their health insurance through their employers, many people also lose their health insurance when they lose their jobs. And COBRA is so expensive that few people receiving only unemployment insurance can afford it.

Congress is currently working with President Obama to ensure that all people – no matter where they work or live – have health insurance. We are also working to make our system more efficient so that health care costs come down for everyone.

As a short-term form of relief, Congress also included for the first time assistance for unemployed people to pay for COBRA coverage. The Recovery Package included a 65% premium subsidy for people on COBRA. For more information on whether you are eligible for this benefit, please contact my office at 586-498-7122.

Social Security Protection and Support

The American Recovery and Reinvestment Act included a $250 rebate for recipients of Social Security, Supplemental Security Income, Railroad Retirement and Veterans Affairs disability and pension payments. These payments were sent out in the month of May.

(Updated November 18, 2009)