Contact: Judy Putnam or Karen Holcomb-Merrill at (517) 487-5436

July 16, 2010

MLHS Statement:

Michigan families need fast action on unemployment;

Congress also must offer relief to struggling states

With thousands of Michigan families and individuals awaiting word on extended unemployment benefits, Congress needs to act quickly to restore this crucial safety net.

For workers and their families trying to pay bills and meet mortgage payments, the loss is devastating. By Saturday, 104,000 workers in Michigan will have lost benefits prematurely, according to the National Employment Law Project, even as the unemployment rate remains in the double digits.

NELP estimates that Michigan’s economy is losing $200 million a month because of the loss of unemployment benefits. Unemployment benefits are one of the most effective economic stimulants available because jobless workers use them to pay bills and keep the dollars circulating.

Michigan’s state safety net is frayed, and the state has few resources to absorb thousands of new families into the cash assistance program. Nonprofit organizations report they are strained to the breaking point.Michigan has led the nation’s unemployment rate for 49 out of the past 50 months.

The majority of the Michigan delegation has supported extended unemployment benefits and should be thanked for understanding the stress upon families and the state economy. Only U.S. Reps.Candice Miller and David Camp voted ‘no’ whileRep. Peter Hoekstra did not vote.

Today’s anticipated appointment of a replacement for the late U.S. Sen. Robert Byrd, D-West Virginia, means the Senate may have the 60 votes needed to pass the extension, perhaps as soon as next week.

Congress needs to act quickly on this. It must also provide needed fiscal relief to Michigan and other states to pay for health care and other services needed during this difficult economic period. Without that help or other revenue, Michigan must cut more than $500 million from the state budget that will affect health care for vulnerable families, help for abused children, programs for the elderly and other vital services.

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The Michigan League for Human Services is a statewide, nonprofit, nonpartisan policy and advocacy group for low-income residents. It has a network of more than 1,500 from business, labor, human service professions and faith-based organizations as well as concerned citizens.

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A UNITED WAY AGENCY