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Michigan Legislature approves bill to extend, boost unemployment benefits

Bill would increase the max weekly payout from $362 to $614 by 2027

The Legislature approved Senate Bill 40 Dec. 13 to increase unemployment insurance benefits. If Gov. Gretchen Whitmer signs the bill into law, it will also increase the amount of time a person can claim unemployment from 20 weeks to 26 weeks.

The bill, sponsored by Sen. Paul Wojno, D-Warren, would increase the maximum weekly payout from $362 to $614 by 2027, with incremental increases in 2025 and 2026.

Wojno did not respond to an email seeking comment.

“That money goes straight back into the economy and it’s really a buffer for folks who need it,” Sen. Cherry, D-Flint, told reporters after legislative session on Dec. 10, the Michigan Advance reported.

The change will trigger even higher tax increases on employers,Dave Worthams, director of employment policy at the Michigan Manufacturers Association, said in a press release.

“Increasing the weekly maximum benefit with an undefined cost to Michigan job providers is irresponsible and will threaten the state’s competitiveness compared to neighboring states,” Worthams said.

The Senate Fiscal Agency determined that when the maximum payout reaches $612 per week in 2027, it will result in $531.1 million in additional disbursals from the state unemployment account funded by taxes on employers. This would increase total payouts by $1.3 to $1.4 billion at current payout levels, the agency said. If the state experiences an economic recession, the payout total will increase, along with unemployment claims.

This change will do more harm than good, said Wendy Block, senior VP of business advocacy for the Michigan Chamber of Commerce.

“This is another massive variable and another consequence of rushing public policy that fails to take into consideration these kinds of real impacts that end up causing more harm than good,” Block wrote in an email to Michigan Capitol Confidential.

Private employers will have to pay higher taxes to fund the boosted benefits, Rep. William Bruck, R-Erie, told CapCon.

The Legislature, currently controlled by Democrats, did not work with private employers or chambers of commerce on this bill, he said.

The bill did not go through a committee on the House side, where interested individuals and organizations usually express concerns and request changes, Bruck said.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

News Story

Michigan lawmaker pitches fee on museums, concerts

Rep. condemns $3 ‘fun tax’ on tickets costing more than $30

Michigan residents who enjoy the recent success of the Detroit Lions may find the cost of attending a game going up should a new piece of legislation in the Michigan Legislature be enacted.

Sen. Mallory McMorrow, D-Royal Oak, introduced Senate Bill 1148 on Nov. 26.

The bill would allow certain cities, villages, and other municipalities to impose what it calls a ”ticket enhancement fee,” capped at $3. It would apply to all tickets sold for $30 or more.

If passed by both chambers and signed into law by the governor, the bill would allow local governments to raise the price of attending a wide range of venues and events: zoos, live theaters, museums, operas, professional sporting events, concerts, temporary or transient entertainment, botanical gardens, amusement parks, dance productions, literary events, or cultural festivals.

Certain events would escape the fee. These include high school, middle school, and elementary school events. Also exempt would be events sponsored by nonprofits or charitable organizations, collegiate athletic contests, and events held at a venue with a capacity of fewer than 500 people.

McMorrow didn’t respond to two requests for comment.

Money from the enhancement fees, plus related interest and penalties, would have to be deposited in the state treasury and credited to a restricted account for the relevant municipality.

Rather than increase government revenue, one legislator told Michigan Capitol Confidential, state officials ought to make governments more efficient. ”We need to focus on better budgeting,” said Rep. Donni Steele, R-Orion Township, “instead of trying to pull more money from residents by taxing fun.”

The bill was referred to the Committee on Economic and Community Development.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.