(LANSING, Mich.) – The Michigan Chamber released the following statement in response to the Michigan Senate’s passage of legislation (Senate Bill 40 and House Bill 5827) today to drastically increase UI benefits – and costs to employers, who fund 100% of the cost of the UI system.
“This unrealistic legislation drastically increases the cost of our state’s 100% employer-financed unemployment insurance (UI) system,” said the Chamber’s Senior Vice President of Business Advocacy, Wendy Block. “The MI Chamber is strongly opposed to this proposal because it is nearly impossible to enact a benefit payout of this size without increasing UI taxes on employers. Despite a Michigan have a robust UI Trust Fund balance of $4.54 billion in March of 2020, the fund that pays benefits remains in an unhealthy financial state due to mismanagement and an influx of fraudulent claims paid during the COVID-19 pandemic.”
Block added: “We believe the focus of this legislation is misplaced. There are more than 200,000 open jobs across Michigan today and businesses continue reporting difficulty finding workers ready and willing to fill them. Rather than focusing on ways to increase unemployment benefits, we believe the Legislature should focus on finding ways to match unemployed workers with available jobs.”