Monday, August 03, 2009

Michigan's Unemployment Skyrocketing; Benefits Run Out After 79 Weeks. With unemployment in Michigan skyrocketing - June's rate was 15.2 percent, the highest since May 1983 - nearly 100,000 people are expected to exhaust their unemployment benefits in the state between May of this year and January 2010, state officials say. And human services officials are wondering how the state will be able to handle the added strain on an already stressed public assistance system. "We are very concerned about the large number of people who will be losing benefits over the next several months, and we are particularly concerned about the strength of the safety net that exists for these folks," said Sharon Parks, president and CEO of the Michigan League of Human Services, an advocacy group for low-income people. Because of the state's rising unemployment rate, the state Department of Human Services in May began tracking the numbers of jobless persons who will exhaust their unemployment benefits. Nearly 600,000 new claims have been filed for unemployment benefits in Michigan since December, officials say. Demand increases Partly due to rising numbers of those exhausting their benefits, state officials say they have seen an increased demand for services statewide. For instance, the Department of Human Services set a new record in May with 700,000 households receiving food assistance from the state - a rise of 36 percent since 2006. To meet the rising need, the state agency is in the process of hiring 200 temporary workers to handle the extra applications, and it's developing an online application for food assistance so that people don't have to go to county offices to apply, said Gisgie Davila Gendreau, spokesperson for the agency. "We have seen an overall increase in the number of people coming to us for help, and we're looking for different ways to meet that need," she said. Parks said many of those exhausting unemployment benefits likely will not qualify for cash assistance from the state. To qualify, a family of three must earn less than $814 a month. Currently, unemployment benefits are capped at about $387 a week. "When this (unemployment) income goes away, these people have large obligations," Parks said. "We're concerned about foreclosures, evictions, utility shutoffs." The state is experiencing rising levels of jobless people exhausting these benefits, even though the duration of those benefits have expanded dramatically. Traditionally, Michigan jobless persons are eligible for up to 26 weeks of benefits a year. But the state and federal government has implemented a number of extensions, beginning last summer, that now offer up to 79 weeks of unemployment benefits. New measures In May, the House passed legislation that would extend benefits for an extra 26 weeks for those enrolled in a state-approved jobs training program, and also allow part-time employees to apply for benefits; for the first two years, the state would receive $138.9 million to fund the program. The legislation has stalled in the GOP-controlled Senate, where Republicans have questioned whether unemployment taxes would rise for businesses once the federal funding runs out. "With the nature of the problems that these families and the workers are going to face, if we have an opportunity to extend their benefits and expand their training, I can't see why we wouldn't (accept the federal funding)," said Senate Democratic Leader Mike Prusi, D-Ishpeming. Prusi said he also experienced the pain of unemployment, when he was laid off as an iron ore mine worker in 1981 in Marquette County. Supporting a wife and two young children, he exhausted his unemployment benefits after 65 weeks, and then went without income for another month before landing a job with a painting contractor. "I've got firsthand knowledge, and it's not pretty," Prusi said. "It was very tough. I didn't know what I was going to do. Everybody in the county was looking for a job." Smith-Schepperley said her unemployment has been a tough, humbling experience that has taught her to appreciate life more. Even though she has a new job, she still worries about the future, including how her 15-year-old sons will pay for college. "I'm scared," she said. "I had a huge retirement and a $200,000 house. Now I have nothing. What's going to happen when I get old?" Help is available Utility shutoff • Under its Pennies for Power program, the Lansing Board of Water & Light offers one-time utility shut-off protection for customers who can't make their utility bill payments. For more information, contact the utility at 702-6000. • Consumers Energy offers a shut-off protection plan to help senior citizens and low-income families avoid loss of utilities due to non-payment. For more information on that program and others, visit http://www.consumersenergy.com/welcome.htm . Food assistance • Food is available for needy families from a number of food banks and pantries in mid-Michigan. For instance, the Ingham County Food Bank offers families up to six days worth of non-perishable groceries once in a 30-day period. The food bank can be reached at 887-4357. Mortgage help • The Association of Community Organizations for Reform Now (ACORN), a nationwide network of community organizations with offices in Lansing, helps families avoid foreclosure by advocating on their behalf to negotiate affordable mortgage payments. The services are free. For more information, visit https://secure.acornhousinghelp.org . For the full article, see Scott Davis, "Many near end of jobless benefits; Safety nets will be tested as thousands exhaust state aid", Lansing State Journal, August 2, 2009. [Red Tape Blog] 10:35:22 AM

© Copyright 2009 Jocelyn Shaw. Last update: 9/1/2009; 11:47:40 AM. Photo curtesy of Marjorie O'Brien