March 2021 MiMfg Magazine 25
Employer-Funded Unemployment Trust Fund Stable for 2021
Michigan ’ s Unemployment Insurance Agency ( UIA ) announced that a $ 500 million balance in the state ’ s Unemployment Insurance Trust Fund ( UITF ) is expected to be sufficient to cover the estimated $ 27 million paid weekly in unemployment benefits for the rest of the year . The report is positive news for employers who exclusively fund the UITF and would incur additional costs if the state were forced to borrow from the federal government in the event reserves are insufficient to cover unemployment benefits .
The solvency of the employerfunded UITF has come into question as the state paid out record levels of unemployment benefits as a result of the COVID-19 crisis . Since 3 / 15 / 20 , the UIA has paid over $ 29 billion to claimants . $ 5.1 billion has been paid from the UITF , with the remaining benefit payments coming from federal programs .
The UIA credits Michigan ’ s Work Share program with saving the UITF over $ 80 million . At the peak of enrollment , 2,700 Michigan businesses and 97,000 employees participated in the Work Share program , which allows job providers to put employees on a reduced work schedule and pay a portion of their wages while the employee collects partial unemployment benefits .
MMA ’ s Mike Johnston was quoted in the agency ’ s press release : “ We are encouraged to hear the UIA projects the UITF will not need to borrow funds in 2021 , which means employers will avoid increased employment costs due to borrowing . One of the best solutions to solvency is getting people back to work , through Work Share , and filling open positions in manufacturing through work search .”
Governor ’ s Budget Recommendations Released
Governor Gretchen Whitmer has released her Fiscal Year 2021 – 22 Executive Budget Recommendation , totaling $ 67.1 billion for the year . Of particular interest to manufacturers , the budget proposal includes :
• $ 43.7 million : Going PRO Talent Fund
• $ 120 million : Michigan Reconnect
• $ 39.1 million : Futures for Frontliners
• $ 3 million : Statewide Pre- Apprenticeship Program
• $ 20 million : contaminated site cleanup and rapid response teams for contaminated sites
• $ 225 million : small business grants and relief programs as part of the MI COVID Recovery Plan
• $ 25 million : support mobility and electrification
MMA ’ s Liethen Named to Leadership Role in GLMJ Coalition
Caroline Liethen , MMA Director of Environmental and Regulatory Policy , has been named Vice President of the Great Lakes Michigan Jobs ( GLMJ ) Coalition , a bipartisan , diverse group of residents and business , labor and civic organizations dedicated to protecting the Great Lakes and safely delivering the fuel that keeps Michigan ’ s economy moving .
The GLMJ Coalition backs the construction of the Great Lakes Tunnel bored deep in the bedrock under the Straits of Mackinac lakebed and will house a replacement segment of Enbridge ’ s Line 5 pipeline , as well as other potential utilities for bolstering Michigan ’ s economy in both peninsulas . The tunnel project is a $ 500 million private investment by Enbridge and once built , the tunnel will be owned and operated by the State of Michigan with governance and oversight by the Mackinac Straits Corridor Authority , created by the Legislature in 2018 and supported by MMA .
MMA continues to take a keen interest and leadership role in the Great Lakes Tunnel and other Michigan infrastructure projects that stand to benefit Michigan ’ s manufacturing sector and the region ’ s overall economic competitiveness , especially as the state looks ahead to the post-pandemic challenges .