Michigan Votes Forum

Introduced in the House on March 9, 2011, to create an unemployment benefit system "Special Fraud Control" fund and require amounts recovered for unemployment insurance fraud violations to be deposited into it. The bill would also double the amount of damages that may be recovered for a second or subsequent fraud violation involving less than $500

The vote was 79 in favor, 31 opposed and 0 not voting

(House Roll Call 41 at House Journal 0)

Click here to view bill details.

Senator Gregory's statement is as follows: 

 I also rise to speak against this legislation. While this change appears to help retain federal funding for 

unemployment benefits on the back end, it limits how long Michigan families will be able to receive benefits. A 

small temporary change is all that was needed to ensure that 35,000 Michigan unemployed workers would continue 

to receive benefits. That technical change is all that was needed to protect an additional 150,000 workers who may 

become eligible from losing those benefits. However, to tie a temporary benefit to a permanent cut from 26 weeks to 

20 weeks is a move that will severely hamper the recovery efforts. 

 As our economy struggles to get back on its feet, we cannot slash the funds that families need to survive. Thirty 

other states have approved this extension legislation without the same changes that Michigan is proposing to do. 

Michigan's unemployed men and women deserve better treatment that this. This attack on unemployed workers and 

struggling families creates further problems. It does not solve them. 

Senator Hunter's statement is as follows: 

 In my talking points here, I was going to talk about partisan tricks, and I was going to take that part out. But I'm 

going to probably leave it in given what was just said. So here we go again with the partisan tricks and the attack on 

Michigan's unemployed workers.  

 At the hands of the Michigan GOP, we were told we would be voting on legislation to do what 30 other states 

have already done and bring Michigan into line with the  federal government, allowing to maximize the benefits 

available to our unemployed workers. This fix comes at no cost to the state and simply ensures the continuation of 

20 weeks of unemployment benefits for Michigan workers that is 100 percent paid for by the federal government. 

But instead of making this simple fix to maintain unemployment assistance for our workers, we are being given 

legislation that would wind up cutting people off of their benefits sooner than they would be if we did nothing today. 

 That's the ultimate slap in the face to our unemployed workers struggling to make ends meet for their families. 

This is a short-term gain for a long-term loss, and it's political gamesmanship at its worst, Madam President. We 

shouldn't be toying with the lifeline that is keeping Michigan families afloat during this difficult economy. While 

our economy has started to show signs of life, there are still a great deal of people who are struggling to find work. 

And instead of helping them make ends meet until they can rejoin the workforce, we're picking their pockets and 

reducing their benefits. We're doing so in the very legislation meant to help them. Unemployment benefits enable 

displaced workers to provide food and clothing for their families, pay their mortgage, car and insurance payments, 

and keep the heat and electricity in their homes while they are searching for jobs. 

 Unfortunately, the Senate Republicans have decided it's okay to meet their desperation with deception today, and 

move to help big business at the expense of Michigan's unemployed workers. I am disgusted by this move. I don't 

know how my colleagues across the aisle, and some on this side of the aisle who belong to the party on that side of 

the aisle to be exact, are going to be able to look their constituents in the eye or sleep at night if they pass this bill. 

 I can't believe this is even an issue up for debate today in this august body, but as it is, I urge a "no" vote on this 

legislation

Senator Young's statement is as follows: 

 I would like to begin with a quote from Woodrow Wilson. He said, "Democracy is not so much a form of 

government as it is a set of principles." What is the  principle that we are purporting or we are saying we are 

purporting when we say that we are going to cut the benefits of those who need them the most? Now are these 

people like those in my district who have maybe one or two degrees, will go from job site to job site, and have been 

rejected every time? These are people who had businesses at one point in time and because of the economy, lost 

them, have fallen on hard times, and don't have anywhere else to go. 

 I think that the only way in which liberty reign supreme in Michigan is not only if policy and law encourage 

economic vitality, but that it also be compassionate; that the spirit of the law lives and resonates with the people. I 

think it is fundamentally wrong for us to have a spirit that we are just going to throw you out there if you are on hard 

times; that our response to you is going to be: Well, if you are unemployed and you can't get a job, too bad. It sucks 

to be you. That is not the attitude we should have. We are in Michigan. What is the purpose of being in a state that 

has the ability to enhance and enrich the lives of the people if we don't give them the opportunity to do so? I think it 

goes against the fundamental powers that we have been given as a state to protect the general welfare, public health, 

the safety and morality of the community. We can't do that. We have people who are unemployed. 

 I think it was President Roosevelt who said that high unemployment is not the stuff of democracy; it's the stuff of 

dictatorship. For us not to have a safety net, for us not to have a safeguard, for us not to have a provision in store for those who have fallen on hard times, we are going closer and closer to losing the very principles, values, and virtues 

in which not only the state, but the nation was built on. 

 I know times are tight, and I know money is short. But I believe that the seal of the city of Detroit will resonate 

throughout this state. If we hope for better things, it will rise through the ashes. I feel that if we focus our policy 

more on job creation and economic opportunity rather than undercutting the legs of the people who need 

unemployment the most, we can be that lone-star transformation. We can blaze a trail as bright as a supernova for 

not only the state, but the entire world to see. There are better ways for us to have economic development to come 

through this state rather than cutting unemployment benefits.  I think it is wrong. I think we can do better I think 

we should do better.  

 Finally, in the words of the Declaration of Independence, we pledge our lives, we pledge our fortunes, and we 

pledge our sacred honor to the independence of this state. It didn't say we pledge our fortunes if we already have 

one. It didn't say we pledge our lives if your life is well-to-do. It didn't say we pledge our honor but just for those 

already in positions of honor. It said for everyone. So let's come together, and let's do right by Michigan. Let's create 

a bright and more prosperous future. 

Senator Anderson's first statement is as follows: 

 I rise in adamant opposition to this legislation before us. We are all in favor of rooting out fraud. That is not what 

this legislation does. This legislation goes much further, and it attacks our workers in Michigan who are out of work 

right now and looking for jobs. This is using legislation that would help our workers by extending the federal 

unemployment, making that available to them--the additional 20--weeks and using it as a way to go after our 

workers who are unemployed in Michigan. 

 My colleagues and I have called for a temporary fix to our state law, to maintain 20 weeks of federally-funded 

unemployment benefits. But, unfortunately, folks across the aisle have decided to marry it to a permanent reduction 

in unemployment eligibility, reducing workers' benefits by three weeks. That is a net three weeks less of assistance 

that Michigan's displaced workers rely on to continue to provide for their families when they look for work. 

 This is three weeks less money going back into our economy for groceries, gas, and prescriptions. This is a prime 

example of Republicans misrepresenting their actions. With this legislation, they are using the federal extension as a 

Trojan horse to ultimately hurt Michigan's unemployed into the future.  

 As we work to rebuild our economy and create jobs, we need to be assisting those individuals and their families 

while they are searching for work. Ultimately, this is going to do the opposite, and we should not stand for it. I call 

on the members on the other side to realize what this action is going to mean to the working people and those 

whoare unemployed in this state and those in the future who will become unemployed. Pink slips know no party 

lines. This issue of unemployment support should not be tinged with such partisan ranco either. 

 This is a despicable action, and I am extremely disappointed in my colleagues across the aisle. This proposal not 

only hurts Michigan's displaced workers, but it hurts us all. We should not be taking benefits away from those who 

need it the most. Pulling the rug out from under workers trying to find jobs is not going to help our economy 

rebound, and it is a betrayal to the people who have put their trust in all of us.  

 I will be voting "no" against this legislation, and I urge my colleagues to do the same. 

 Senator Anderson's second statement is as follows: 

 Notwithstanding the comments of the previous speaker or for clarification, I don't think there's anyone in this 

chamber who doesn't want to help small businesses in this state. But we understand that that's not what this 

legislation does. This legislation is about a 20-week extension which we could do that would not hurt our small 

businesses. It would not impact them whatsoever, but, in fact, would actually help them because every dollar that 

our unemployed receive does not go into their pocket or a savings account. It goes into the back end of the economy 

in Michigan. 

 So if we're really wanting to help our small businesses, let's do this. These are federal dollars that are coming into 

this state just like they've been available to the other  states who have already passed this legislation without the 

onerous provisions that penalize those unemployed. So let's don't try to disguise this issue as helping small 

businesses because if we wanted to that, we would put that money in the pocket of the unemployed so they could 

buy their groceries; so they could do to what they need to do to sustain their families in long periods of 

unemployment. 

 I'm also amazed at the comments of the good Senator from the 38th District. I would hope if he's so concerned 

about federal dollars coming here that he would be one of the first who would get up and say, "I don't want any  federal dollars for my district. I don't want any federal dollars." So I think we need to think long and hard before we 

take a position like that. These are federal dollars that do not impact our state businesses. They do not impact in any 

disproportionate way our taxpayers in Michigan. It's federal dollars that have been made available to every state 

that's affected with high and extended unemployment. I would ask members to think long and hard about those 

comments.

Senator Johnson's statement is as follows: 

 Apparently, Senate Republicans are well versed or better versed in the art of deception than the art of 

compromise. The Legislature needs to make a temporary change to Michigan's law to match a change in federal law 

extending the look-back period from two to three years to ensure that unemployed workers don't lose their eligibility 

for the federal extended benefits unemployment program on April 2 of this year. If we fail to act, 35,000 

unemployed workers in Michigan would immediately be cut from the unemployment program and lose 20 weeks of 

critical support from the federal unemployment insurance program while they look for work.  In addition to that, 

150,000 Michigan workers who might become eligible this year could also lose their eligibility if we don't pass this 

law and if it's not changed. 

 But while Michigan's unemployed workers receive letters that their benefits may be running out and worry about 

how they will continue to provide for their families, they look to this body for assistance. And this is what they get? 

This so-called help today is really stabbing unemployed workers in the back tomorrow. 

 This fix to maintain these federal benefits is being tweaked to cut unemployment benefits permanently for three 

whole weeks. This is just another instance of Republicans putting businesses over people. They are choosing to cut 

unemployment assistance three weeks from Michigan workers in order to reduce insurance payments for businesses.  

 Senate Republicans must think that it's okay to kick unemployed workers while they are down and out. But it's 

not okay, Madam President. People are suffering and every dollar of unemployment assistance is vital to helping 

families survive. Cutting assistance three weeks is deplorable and would not only betray our displaced workers, but 

it will undercut our efforts to rebuild this Michigan economy. 

 We need to stop pitting businesses against workers and, instead, work together on solutions that can benefit both. 

Unfortunately, this is not one of those solutions, and it's creating more problems than it, in fact, solves.  

 That's why I oppose this legislation. I oppose Senate Republicans attack on Michigan's unemployed workers, and 

I urge my colleagues to vote "no" on this bill. 

Senator Whitmer's statement is as follows: 

 I don't know if it's the lawyer in me, the mom in me, or the legislator or the public policy nerd. Yes, I said nerd. I 

have to look at this piece of legislation and say what is the public policy here? Where are the jobs? I thought job one 

was jobs in Michigan. In fact, we have over 500,000 people in our state and their families who need help. 

 Supposedly the public policy of this bill was to extend unemployment benefits to people who are struggling to 

find work. In actuality, this bill claims to do that, but, once again, we are seeing that they say one thing and do 

another. Despite what their press releases are going to claim, this represents a net loss of unemployment benefits to 

the people of Michigan. It hurts workers. It doesn't help them. 

 Let me repeat. The Republican unemployment bill does two things. It's a permanent net loss of unemployment 

benefits to workers, and two, it protects businesses who act fraudulently. Once again, they are speaking out of both 

sides of their mouth. No wonder the Governor's numbers are plummeting. That's a consequence of saying one thing 

and doing another. 

 This has zero impact on jobs in Michigan, which I thought was job one. It hurts people who need help the most. It 

pushes a national Republican agenda which puts corporate bottom lines over people. Therefore, I voted "no" on the 

bill. 

 That said, I recognize that the Republicans are in charge. You've made it abundantly clear. Governor Snyder 

wants to see this bill on his desk. The Majority Leader, himself, offered the amendment. Speaker Bolger has passed 

this in the House, but it appears that you are unable to complete the job with only 25 votes and 26 needed for 

immediate effect. We need to have this done by April 1 for any of the federal dollars to come to Michigan. 

Therefore, the Senate Democrats feel compelled to be responsible to help you complete the process. I will vote for 

immediate effect despite what this bill does. It is necessary for us to get the federal money into Michigan, but it 

sickens me what has happened here in the state with regard to this bill.

Senator Green's statement is as follows: 

 I am voting today for this extension of unemployment benefits, but I am greatly disturbed. Our state Auditor 

General, who has been spoken of some today, reported just yesterday that businesses in Michigan have overpaid 

unemployment compensation for 177,000 claimants. But the Obama Administration's Department of Labor benefit 

accuracy management data from 2009 found that over 7 percent of all benefits paid, or $475 million of 

unemployment benefits paid, was waste and fraud. And that was just one year here in Michigan, almost half a billion 

dollars. 

 The Auditor General identified one case where a claimant was referred to the Fraud Investigation Unit who had 

worked full-time while simultaneously certifying for and receiving 31 weeks of benefits. The claimant admitted to 

defrauding the system because of personal financial difficulties. But the claimant continued to work for another 13 

months, opened a new claim, and collected 13 more months of unemployment benefits, while working full-time, 

after admitting to 31 prior weeks of fraud. The Fraud Investigation Unit claims they will never recover the money. 

 Folks, this is crazy. There are thousands of cases like this every day out there--almost half a billion dollars that 

our businesses are paying in fraud. These people are crooks, and we're letting them get away with it. So I'm voting 

today to extend unemployment benefits, but it's time for the system to get fixed and to get serious about stopping 

these crooks from taking money from all of my hardworking constituents and businesse

Senator Kowall's statement is as follows: 

 The state unemployment system in Michigan is bankrupt, and it needs to be fixed. The state unemployment trust 

fund is $3.9 billion in debt, created by massive unemployment payouts from Michigan's decade-long recession. The 

fund is supported by state and federal unemployment taxes paid by job providers. The Senate amendment to House 

Bill No. 4408 provides a solution while ensuring the constitutional benefits for the long-term unemployed. 

 The unemployed persons in this pipeline today are unaffected by the change from the state to federal system. I 

would encourage all of my members to vote for this. This is the first step in putting Michigan back on track and 

sending a message to the rest of the country telling them that the Michigan Republican Party is in charge, and we are 

going to get people back to work. 

Senator Colbeck's statement is as follows: 

 I'd actually like to start by taking a departure from all the partisan discussion that's been going on right now and 

kind of refocus everybody on what I believe that everybody on both sides of the aisle ran for, and that is the subject 

of getting people back to work and jobs. I think that the best social program we can have, frankly, is giving people a 

good fair-paying job that gets them back here. And along that path one of the keys to getting people back to work is 

by lowering the total cost of business operations for businesses so they can free up capital so they can go off and 

hire new workers. 

 I'd like to take a little bit of an exception with the thought that the federal government is the one paying for this 

increase in benefits. The federal government doesn't pay. They don't have money that's set aside just by the federal 

government and sustained by the federal government. Those fees are actually paid for by businesses, and what we 

are trying to do here isn't about being pro-business for the sake of pro-business. Being pro-business is good for all 

the citizens in Michigan because by enabling businesses to have more money to spend on employees, we all get to 

work and we all get our job. 

 You know, this bill is not a perfect bill. I think the perfect bill would be a case where we don't even need 

unemployment insurance because everybody is back to work. I'd like to re-engage all my colleagues on both sides of 

the aisle that our singular focus should be on getting American citizens and, in particular, our Michigan citizens 

back to work so that we don't need unemployment extensions.  

Senator Casperson's statement is as follows: 

 I want to correct a couple things that were said. The one that is the most glaring to me is the federal dollars. I 

believe the attitude that I just heard is exactly why this state and this country is in the trouble it is in. Somehow the 

federal government has a money tree some place, and they just have money. We somehow can just tap into it. When 

I hear that discussion on the other side of the aisle, the one entity that is left out of this entire equation is the 

taxpayer--we, the people. Because the government has somehow grown this money, they can just simply spend it, 

and there are safety gaps, so that is how it works. The taxpayer is continually left out of this discussion I also heard that folks have no place to go. How did we go from a 20-week extension to suggesting that we are 

cutting them off? I guess only in this chamber could we come up with that type of conclusion. At the end of this, 

they have no place to go. My son is a junior at Western Michigan University. I am a sitting State Senator, and my 

wife is a dental hygienist. My son qualified for a Bridge Card. I've got a feeling that if I have a family and I've got 

no place to go, this state has plenty of safety nets designed to take care of them. 

 I would suggest that we do stop the rhetoric and trying to play off this thing to gain political points, and let's fix 

the problem. I agree with the former speaker that putting people into jobs is the way to fix the problem. We don't get 

there when every time we open our mouths, we demonize the very job providers that are going to provide the jobs 

for us. This is trying to offer an opportunity for both sides--a safety net, an add to the unemployment, and a fairness 

to the business people paying the bill. This is designed to help both sides. That's how we are going to move 

Michigan forward.

Senator Caswell's statement is as follows: 

 Small businesses are job creators, and over 80 percent of our jobs come from them. I ran into an individual who 

owns a factory in my district when I was campaigning. He spent over half of his personal fortune to keep his factory 

open and going. His comment to me was, "Bruce, these people I have working out here are my friends and 

neighbors, and I am going to do everything I can to make sure they continue to have a job." I have compassion for 

that kind of individual who is living the American Dream and doing everything he can in order to keep his people 

employed. 

 I ran into numerous, numerous small business owners who had spent their entire 401(k)s that was their retirement 

in order to keep their business open through the dark days to keep their friends and neighbors employed. They have 

nothing left for retirement. I have compassion for those people who have worked hard every day of their life and 

sacrificed everything when times got tough to keep their friends and neighbors employed. 

 I ran into a flower shop in one of my cities. I walked in and it was 60 degrees in that flower shop. They did not 

have money for heat. They were $3,000 behind in their rent, and the individual who owned the building said, "I will 

let you stay there as long as you keep people employed." And she did. I have compassion for those people who have 

done everything in their power to keep their businesses going and to keep people employed. The stories go on and 

on and on. Small businesses--the job creators--are our friends and neighbors. They employee our friends and 

neighbors. We have to understand that when they live the American Dream, we all live the American Dream. Hard 

work should be rewarded, and success should be rewarded. Each of us should praise those who create jobs and make 

the kind of sacrifices that I just mentioned to keep their friends and neighbors employed. I salute them.  

 Yes, there are a lot of things wrong with unemployment. I will tell you of one. One is that if you are a private 

business owner of a certain kind of business and you shut it down, even though you are required to pay 

unemployment on yourself--full unemployment--you get seven weeks of unemployment and that is it. Oh, you can 

also get a five-week extension, but you are expected to pay fully into the unemployment insurance fund. I have 

compassion for those people who have paid the full bill and can benefit very little from the unemployment insurance 

system. 

 God bless our small business owners, and may we make Michigan a state that you are proud to be in; that we 

welcome success, and we champion those who employ our friends and neighbors.

Senator Pappageorge's statement is as follows: 

 I would remind the previous speaker, maybe folks don't understand how this money works. Each individual 

business owner has an account with the feds and the state, and that business owner pays that money to the feds and 

to the state. We all understand that now? So when you suck money out of every one of the businesses in your 

district, don't ask them to be able to hire or keep more people. They can't do it if we keep sucking the money out of 

that business. Hello? Hello? This is not business versus workers. The only people who pay taxes are individuals. But 

we go out of our way--and have for years--to figure out how to have business collect the money for us. That's what 

is going on. 

 Every one of your businesses--let me say it again--every one of the businesses in your district are paying this bill. 

They need relief. The idea of some magic, federal money comes into the system, and therefore, allows people to buy 

things and businesses prosper is really misguided.  

 This bill extends benefits for 20 weeks. At the same time, it gives relief. Let me say that again: It gives relief to 

every business in your district, and if you're telling me the businesses in your district don't need that relief, I would 

say check again with your businesses. 

You SOB are reallity something. If you wanted to save the state money (All you have to do is go to part time Legislator) and the state would save Million of $$$$$$$$$$$$$