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HB 5827

Employment security: benefits; weekly dependent care amount and benefit period; increase. Amends sec. 27 of 1936 (Ex Sess) PA 1 (MCL 421.27).

2023-2024 Regular Session Introduced by Karen Whitsett

Raises the UI benefit cap from 20 to 26 weeks for new claims after Jan 15, 2025, expanding total weeks eligible for unemployment benefits.

vetoed by the Governor 01/17/2025
#employmentsecurity:benefits
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WeVote Research Nonpartisan
Bill Summary · HB 5827

Summary — HB 5827 (Whitsett): Increase maximum unemployment benefit weeks

Status: Passed both chambers (enrolled) December 10, 2024; vetoed by Governor January 17, 2025.
Sponsor: Rep. Karen Whitsett.

Main purpose

To amend Section 27 of the Michigan Employment Security Act to (1) increase the maximum number of weeks an eligible claimant may receive state unemployment insurance (UI) benefits in a benefit year from 20 weeks to 26 weeks (an additional 6 weeks), and (2) change how the State Average Weekly Wage (SAWW) is computed for certain benefit-year calculations.

Key provisions

  • Maximum benefit weeks
    • Current range under law: 14 to 20 weeks per benefit year.
    • Under HB 5827: 14 to 26 weeks per benefit year for eligible individuals filing an initial claim on or after January 15, 2025.
  • State average weekly wage computation
    • For benefit years beginning on or after January 1, 2025, the SAWW for a calendar year would be computed using the 12 months ending the June 30 immediately preceding that calendar year (i.e., a June 30 trailing-12-month basis).
  • Implementation timing
    • Bill provided it would take effect 90 days after enactment. (Because the bill was vetoed, it did not take effect.)
  • Administrative
    • One‑time IT changes to the Unemployment Insurance Agency (UIA) systems would be required to reflect the new allowable weeks.

Who would be affected

  • Primary: Michigan claimants eligible for state UI who file initial claims on or after January 15, 2025. Those reaching the prior 20‑week cap could potentially receive up to 6 additional weeks.
  • Secondary: Unemployment Insurance Trust Fund (UITF) and UIA operations; potentially employers (through future UI tax adjustments if fund balances or solvency change).

Fiscal impact (estimates from nonpartisan analyses)

  • Using recent payout patterns: annual UI payouts were $763.1 million; moving to a 26‑week cap could have increased payouts to roughly $839.4M–$867.6M — an additional ~$76.3M to $104.5M (based on 2023–2024 claimant trends).
  • 34% of claimants currently reach the 20‑week limit; marginal per‑claimant cost increases estimated:
    • If claimants decline at current week‑to‑week rates: ~9.8%–13.7% higher average cost per claimant.
    • If drop‑off slows by 1 percentage point, per‑claimant costs could rise ~17.4%–19.8%.
  • UITF balances noted in analyses: ~$2.8 billion (Nov 2024) and ~$2.67 billion (June 2024). Analyses concluded the estimated increased payouts would remain under recent annual UI tax collections but would nonetheless materially affect the Trust Fund.
  • UIA: minimal ongoing fiscal impact; one‑time IT costs likely covered by existing federal/state restricted funds.

Background & context

  • Before 2011 the statutory maximum was 26 weeks; Public Act 14 (2011) reduced it to 20 weeks for initial claims filed on or after January 15, 2012.
  • A related Senate bill (SB 40) addressed increases to maximum weekly benefit rates and dependent amounts; SB 40 was enacted as 2024 PA 173 (signed Dec 23, 2024). Governor’s veto message for HB 5827 noted conflicts between HB 5827 and SB 40 and stated signing HB 5827 could undo provisions in SB 40.

Procedural history (selected)

  • Introduced: June 18–20, 2024 (Rep. Whitsett).
  • Passed House (with immediate effect): June 26, 2024.
  • Passed Senate: December 10, 2024.
  • Enrolled and presented to Governor: January 8, 2025.
  • Vetoed by Governor: January 17, 2025 (veto message cited conflict with SB 40).

Compiled from official sources — confirm details with the bill’s official record.

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