First it was taxes on pensions linked to a big tax cut for business. Then it was emergency financial managers who can tear up labor agreements. Now, it’s a reduction in unemployment benefits for the jobless.
The Republicans in Lansing are walking a real tightrope as they tighten up the state’s finances but risk a big backlash from a public that may increasingly view the governor and lawmakers as anti-labor — at war with the little guy.
The GOP-controlled Legislature’s surprise move on Wednesday to cut unemployment benefits to 20 weeks – an unprecedented move that would give Michigan the nation’s skimpiest benefits – has riled up Democrats from Lansing to Washington.
As if Gov. Snyder wasn’t facing enough criticism these days for his very non-populist ways, Democrats are loudly calling for him to veto the legislation. In a rare move, U.S. Rep. Sandy Levin has joined forces with state Senate Minority Leader Gretchen Whitmer to oppose the measure.
But here’s the problem: The Legislature is adjourning  for 2 ½ weeks (spring break) and a Snyder veto would create a short-term problem by cutting off federal funding for current unemployment benefits for tens of thousands of families on April 1.
As a result, a spokeswoman said the governor is likely to sign the legislation soon.
The bill provided a needed technical fix so that unemployment checks wouldn’t run out on the first day of April. But the measure chopped the numbers of weeks of eligibility for new filers, starting in January 2012, from 26 weeks to 20.
According to a pro-labor group, the National Employment Law Project, if this measure becomes law, Michigan will become the only state in the nation that pays less than 26 weeks of benefits in its basic state program.
All 50 states have offered a maximum of 26 weeks of jobless pay for more than half a century.  Many states, including Michigan, began offering 26 weeks in the 1950s, well before the vast majority of today’s workers were born.
Since the battle over labor rights in Wisconsin, Snyder has tried to assure Michiganders that he will not pursue any anti-labor steps here. But Christine Owens, executive director of the NELP, said this:  “So far, Gov. Snyder has said he’s avoiding overtly anti-worker tactics employed in neighboring states.  Signing this bill would certainly undermine that assertion.  We urge Gov. Snyder to exercise his independent judgment, do the right thing for all of Michigan’s workers and the state’s economy, and veto this bill.”
State Sen. Patrick Colbeck, a Canton Republican, summed up the GOP point of view when he said the move will save the state budget between $100 million and $150 million. And, more importantly, the senator said, it’s good for business.
“This legislation addresses one of the many factors driving up the cost of doing business in Michigan, which is high unemployment taxes on job providers,” he said. “The U.S. Congress has already voted to increase the federal unemployment insurance tax, so this bill allows us to rein in the costs to Michigan businesses for unemployment liability. The result of the bill is a net savings to Michigan businesses so that they can create more jobs.”
There is some thoroughly twisted logic in there, but I will leave that to some pro-labor Democrat to discern. Perhaps it’s simply the absurdity of cutting off all income for the jobless so that businesses will save a few bucks, with the hope that those employers will use that little windfall someday to hire someone.