Last Updated: September 22. 2009 7:42PM

House approves extension for unemployment benefits

Deb Price / Detroit News Washington Bureau

Washington -- The House voted 331 to 83 Tuesday night to give an extra 13 weeks of unemployment benefits to jobless workers in Michigan and other hard-hit states.

It would extend the extra 13 weeks of benefits to states with unemployment rates of 8.5 percent or more. Michigan's rate is 15.2 percent -- the highest in the nation.

The Senate is expected to take up its bill in the next few weeks. The White House has signaled support.

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Rep. Sander Levin, D-Royal Oak, cited the "agony" of an unemployed steelworker in Madison Heights in urging the House earlier today to pass 13 extra weeks of jobless benefits to Michigan and other hard-hit states.

Levin, speaking on the House floor, recounted a telephone call from Larry Szpanelewski, who lost his job in May 2008 and will run out of benefits before the end of the year.

"You know I never thought this would happen to me," Levin quoted the Michigan man as having said to one of his staff. "... This (unemployment) is agony. It really is. I'm just waiting for the right phone call: 'Come to Work.'"

Under previously passed extensions, Michigan workers can receive up to 79 weeks of unemployment. This measure would boost that to 92 weeks -- or nearly two years.

Republican Rep. Geoff Davis of Kentucky spoke in support of the measure, but criticized President Barack Obama for not creating jobs. The jobless rate in Kentucky is 11.1 percent.

"The fact that we are here today discussing a measure to provide Americans with nearly two years worth of unemployment benefits is yet another sign of the failure of this administration's stimulus plan to create jobs," Davis said, adding the unemployed "should not be made to suffer" because of policies that "failed to create the promised jobs."

In August, 18,000 Michiganians cashed their last unemployment check, and 100,000 in the state face the same prospect by the end of the year.

The Senate bill would also extend earlier expanded benefits through 2010.

It's not clear whether the extension will be dealt with in a combination bill or separately, assuming it passes both chambers and is reconciled by a House-Senate conference committee.

Michigan offers up to $362 per week in unemployment benefits to previously full-time workers, plus the additional $25 per week through the American Recovery and Reinvestment Act, for a total of $387 per week.

dprice@detnews.com (202) 662-8736

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More information

    Benefits answers

    As of today, what unemployment compensation is an unemployed worker (who had worked full-time) entitled to?
    The regular benefits consist of 26 weeks and are provided in every state.
    In June 2008, Congress created, and in November 2008 expanded, an Emergency Unemployment Compensation (EUC) program: This gives people in all states an extra 20 weeks of benefits; and people in states with 6 percent unemployment or higher -- which includes people in Michigan -- an additional 13 weeks.
    At that point, qualifying unemployed Michiganians could get up to 59 weeks (26 standard weeks, plus the 20 weeks people in all states received, plus 13 weeks for people in high unemployment states).
    When the American Recovery and Reinvestment Act (ARRA) was enacted last Feb. 17, states with high unemployment rates became eligible for 100 percent federal funding of Extended Benefits (EB). Usually EB is paid for 50 percent by the state and 50 percent by the federal government.
    In response, some states added more weeks of EB. For example, Michigan added 7 more weeks on top of the 13 weeks they were providing, for a total of 20 weeks of extended benefits. So in Michigan, a jobless worker could qualify for the 59 weeks under the regular benefits and EUC, and another 20 weeks under the EB, for a total of 79 weeks.
    In addition, the ARRA gave unemployed workers $25 extra a week in their unemployment checks, which phases out June 30, 2010.
    What is Congress considering doing and why?
    The House approved a bill today that would give states with unemployment rates of 8.5 percent or greater an additional 13 weeks of benefits.
    The recession officially began in December 2007 -- nearly two years ago. That means thousands of Michigan's unemployed -- 18,000 in August alone -- have cashed their last check. By the end of the year, without the proposed 13 new weeks, 100,000 unemployed workers in the state and 1.3 million nationally will have run out of benefits.
    The Senate is expected to take up a bill that includes those extra 13 weeks, plus extends the EUC and EB programs, which expires Dec. 31, through the end of 2010. The House expects to do that step as well, although it is unclear whether both steps will be done simultaneously or in separate bills.
    If the Congress took only the one step and gives Michigan and similarly hard-hit states an extra 13 weeks, what would that mean in terms of unemployed workers?
    If a Michigan worker has exhausted benefits, they could get an extra 13 weeks of compensation, as long as they apply by Dec. 31.
    If a Michigan worker has gone through regular benefits and just beginning the EUC benefits, the worker would be able to finish up the original 20 weeks of the EUC and be eligible for 13 weeks of EB benefits, for 59 weeks total. The further extensions would have expired at the end of 2009.
    If a Michigan worker is in the regular benefits and will exhaust benefits after December 31st, they would get 13 weeks of EB benefits in addition, for 39 total, but would not start the emergency program as it would have expired at the end of 2009.
    What would be the impact if Congress does not extend the EUC program through 2010?
    As of Jan. 1, 2010, Michiganians would qualify for 26 regular benefits, plus 13 weeks of the EB program, for a total of 39 weeks.
    What happens if Congress passes the 13 weeks and extends the EUC program through 2010?
    Michiganians might qualify for -- in addition to 26 weeks -- 33 weeks of the original EUC program, 13 weeks of EB, plus the 13 weeks just added, for a total of 85 weeks.
    What happens if Congress passes the 13 weeks, extends the EUC program through 2010, and extends federal financing of EB through 2010?
    Michiganians would qualify for 26 weeks in the standard state program, 33 weeks of the original EUC program, 20 weeks of EB, plus the 13 weeks just added, for a total 92 weeks. As the end of 2010 approaches, a worker would finish any tier of weeks they have started, but may not get the entire 92 weeks as the emergency programs expire.
    Who pays for the benefits?
    Regular unemployment benefits are paid for by a state payroll tax on employers. Michigan's state trust fund is held by the U.S. Treasury.
    The federal government pays 100 percent of the EUC, 100 percent of the EB benefits and all of the $25 extra a week in checks.
    If there is an extension of 13 weeks, the federal government will pay 100 percent.
    If a provision in the Recovery Act to provide for federal-financing of EB is not extended (it expires at the end of the year), states would begin splitting the tab with the federal government, 50-50.
    The author of the extra 13 weeks -- Rep. Jim McDermott, D-Wash. -- says it wouldn't add to the federal deficit because it would extend for one year the federal unemployment tax (employers pay $14 each year for each worker) and would put in anti-fraud steps to avoid overpayments.
    Source: Detroit News research; office of Rep. Sander Levin, D-Royal Oak.

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