supplemental

Democratic Lawmakers Optimistic as Md. Court of Appeals Declines to Hear Unemployment Case

July 6, 2021 by Maryland Matters

The legal battle over Gov. Lawrence J. Hogan Jr.’s decision to pull the plug on supplemental unemployment benefits is expected to return to a Baltimore City courtroom in the next two weeks.

Two state lawmakers who crafted unemployment insurance legislation this year said on Monday they expect attorneys for uninsured Marylanders to prevail — and for the court to reverse Hogan’s order that benefits end two months early.

Although the administration has maintained that it was within its rights to end a supplemental $300-per-week federal payment at the beginning of July, the lawmakers said a plain reading of state law suggests otherwise.

Sen. Jim Rosapepe

“It’s pretty clear — from [pre-existing] law and the 2021 law — that the legislature wants the state to maximize help for its unemployed workers,” said Sen. James C. Rosapepe (D-Prince George’s). “That means making the rules and taking the money that the federal government allows Maryland to use to help people.”

Rosapepe and Del. Lorig Charkoudian (D-Montgomery) sponsored legislation this year — Senate Bill 893 and House Bill 1002 — to prevent the state from leaving money on the table.

The circuit court ruling that temporarily blocks the state from ending benefits 60 days early quoted from the legislation, noting “…the General Assembly’s pandemic-specific interest in requiring that the Maryland Labor Secretary review federal regulations and guidance to identify ways to ‘expand access to unemployment benefits.’”

“That provision… reinforces the desirability, expressed by the General Assembly, of seeking all forms of federal assistance,” the court wrote.

The federal supplemental unemployment benefits are due to expire in early September.

Gov. Larry Hogan

Hogan has repeatedly said he was justified in ending them early because employers are having a difficult time filling vacant positions, a phenomenon he has blamed on the checks that unemployed workers are receiving.

“There are record numbers of jobs available, and this program is making it harder to fill them, and hurting our restaurants and small businesses,” said the governor’s communications director, Mike Ricci, in a statement on Monday.

“The White House and the U.S. Secretary of Labor agree that governors can take this action, and most already have. We are confident the courts will ultimately rule in favor of our fight to get more Marylanders back to work and continue a booming economic recovery.”

Two dozen governors, almost all Republicans, have acted as Hogan has.

Early on Monday, Court of Appeals Chief Judge Mary Ellen Barbera issued an order declining the Hogan administration’s request to hear the case.

The case will return to Baltimore City Circuit Court, which is expected to hold a hearing on a longer-term preliminary injunction before the temporary restraining order expires on July 13.

On Saturday, as required by the restraining order, the Hogan administration sent a letter to the U.S. Department of Labor rescinding its notice to end participation in the expanded federal unemployment insurance programs. At the same time, Labor Secretary Tiffany P. Robinson said the state’s rescission letter would serve as notice that the state intends to seek an end to its participation in the unemployment programs on July 14, the day after the Circuit Court’s current order expires.

Rosapepe said Hogan was not only legally wrong to curtail benefits, he was wrong as a matter of policy.

Ending benefits in July rather than September, he said, would cost the state an estimated $1.5 billion in federal aid, with no state match required.

Out-of-work Marylanders would be certain to spend that money immediately on food, rent and other essentials, he maintained, boosting the state’s economy. “It helps everybody,” he said.

Rosapepe said he and Charkoudian were motivated to craft legislation this year after learning that the White House intended to supplement unemployment benefits that were due to expire in March — and to maintain eligibility for newly eligible “gig” workers.

The House version of their bill passed the House on a party-line vote, 95-40, on March 18.

The Senate version was approved unanimously, 45-0, the following day.

“The law, the facts, the intention, the context, all say the same thing, that the legislature intended to make sure these folks are protected — and that the state is protected,” Rosapepe said.

By Bruce DePuyt and Danielle E. Gaines

Democrats Slam Hogan’s Decision to End Expanded Unemployment Benefits, Look to Block Action

June 3, 2021 by Maryland Matters

Alarmed at the prospect that needy families will be hurt by Gov. Lawrence J. Hogan Jr.’s decision to end supplemental unemployment benefits in early July, members of the General Assembly scrambled on Wednesday to blunt — and perhaps block — his action.

Legislative leaders sought advice from Attorney General Brian E. Frosh (D) about a possible special session — and a powerful committee chairman said he will introduce legislation to advance the effective date of Maryland’s $15-per-hour minimum wage law.

The flurry of activity was set in motion by Hogan’s decision to end the $300-per-week supplemental unemployment insurance benefit that some Marylanders have been collecting, effective July 3.

The state will also stop providing a $100-per-week payment that “mixed earners” — typically gig workers who have multiple sources of wage income — have been receiving.

In addition, people who have been out of work for more than 26 weeks will see their benefits end.

Congress approved enhanced payments last year in response to the COVID-19 pandemic.

In announcing his actions, Hogan pointed to the state’s improving economy and the surge in the state’s supply of vaccines. Even though 70% of adults have received at least one dose of a COVID-19 vaccine, the governor said many employers are having trouble finding workers.

Two dozen Republican governors have taken similar steps, with many arguing that jobless benefits create a disincentive to seek work.

More than 175,000 Marylanders receiving Pandemic Unemployment Assistance — which expanded eligibility to the self-employed, independent contractors and gig workers — and those receiving payments after extended periods out of work — more than 86,000 people as of May 8 — would lose benefits entirely under Hogan’s action.

All Marylanders receiving unemployment would stop receiving an enhanced $300 payment. As of May 15, there were 42,895 continued unemployment claims in the state; an additional 8,625 new claims were filed in the week ending May 22.

In a letter to Hogan, Senate President Bill Ferguson (D-Baltimore City) and Unemployment Insurance Oversight Committee co-chairwoman Kathy Klausmeier (D-Baltimore County) wrote, “Solving problems requires more than buying into partisan narratives that ignore the very real plight of countless Marylanders facing complex futures.”

The lawmakers urged the governor to reconsider his actions and look at ways to incentivize people back into the labor force, such as those adopted by Colorado.

If Hogan fails to alter his position on supplemental unemployment benefits, the leaders wrote, ”our chamber will be forced to consider all other tools at our disposal to ensure our state’s prosperity.”

The fiscal year 2022 budget was approved by the General Assembly earlier this year — and lawmakers were unclear on Wednesday whether they have the power to force Hogan to reverse his stance. Lawmakers adjourned in April and are not scheduled to return to Annapolis until January.

Comptroller Peter V.R. Franchot (D) urged lawmakers to consider an emergency special session to insist that Hogan keep the payments flowing.

In an interview, Frosh said it would be a challenge for lawmakers to find a way to block Hogan immediately.

“It’s going to be tough to get it done right away, but it may be possible,” he said. “We’ll see.”

A former legislator from Montgomery County, Frosh hammered Hogan for ending federally-funded benefits at a time when many out-of-work residents have yet to find new jobs.

“The fact is, if you’re looking to help the economy and help businesses, the best thing you can do is put money in the hands of low-income families, because it goes right back out the door,” he said. “They spend it.”

Frosh called the supplemental payments “a lifeline for folks who are unemployed” — and he said GOP claims that benefits discourage job-seeking are “fallacious.”

Although the unemployment rate has dropped since the height of the pandemic, the attorney general said many jobs don’t pay enough for people to make ends meet, a claim echoed by Del. Dereck E. Davis (D-Prince George’s), the chairman of the Economic Matters Committee.

Davis told Maryland Matters he will introduce legislation in January to move up the effective date of Maryland’s $15-an-hour minimum wage law by 2 1/2 years.

Under his proposal, employers with 15 or more workers would be required to pay at least $15/hour effective on July 1, 2022, instead of January 1, 2025.

Employers with fewer than 15 employees would have to boost pay starting on July 1, 2023, instead of January 1, 2026.

“I don’t think we need to take away the benefits. I think we need to increase the wages,” Davis said. “It’s simple economics.”

Davis said he was motivated to offer the legislation in response to Hogan’s actions on Tuesday.

Legislative Black Caucus Chairman Darryl Barnes (D-Prince George’s) will co-sponsor the measure, which has the support of Speaker Adrienne A. Jones (D-Baltimore County).

“If this is strictly dollars and cents, what that tells me is that they’re not paying enough,” Davis said.

Senate Minority Leader Bryan W. Simonaire (R-Anne Arundel) said Davis’s proposal buttresses his belief that the General Assembly is lurching to the left.

“It’s a constant attack on small business, without the balance,” he said. “This is just another way they can redistribute wealth. … Thank God we have Hogan in office to provide a little balance to the legislature.”

Davis said he will pre-file his bill — and he intends to hold a hearing on it at 2 p.m. on the first day of the 2022 session.

The state’s top fiscal officers also hammered Hogan for ending supplemental benefits.

Treasurer Nancy K. Kopp (D) said the move will cause the most harm to single women with children or older dependents, who will now live in “greater misery.”

Franchot, a candidate for governor, noted that the supplemental federal benefits are set to expire on Sept. 6. He said pandemic-era stimulus payments to individuals and businesses have helped the state’s economy weather the pandemic because they are “economic multipliers.”

“We’re giving up, voluntarily, $1.5 billion in additional economic stimulus,” he said. “And it’s not even our money. It’s coming from Washington.”

“This is about compassion for those who are suffering through no fault of their own,” Franchot added. “The end of the pandemic is in sight. We owe them a bridge to it.”

Del. Kathy Szeliga (R-Baltimore and Harford counties) applauded Hogan’s action.

“With so many businesses unable to fully operate because they cannot find workers, it makes sense,” she said. “There are ‘help wanted’ signs everywhere. Americans are logical. If you pay them to stay home, they will. It’s time to get people back in the labor market and working for a brighter future for themselves and their families.”

An organization representing small business owners also said it welcomed Hogan’s decision.

“Small business owners have been among the hardest hit by the COVID-19 crisis. While they are seeing their sales grow amidst a steady economic recovery, a record 44% of owners reported job openings that could not be filled in NFIB’s latest jobs report,” said Mike O’Halloran, the head of NFIB-Maryland.

“The Governor is right to call this a ‘critical problem.’ Now that capacity restrictions and closings are behind us, we’re hopeful these jobs will quickly be filled as the summer is unofficially underway.”

Even if lawmakers don’t return to Annapolis, they hope to pressure him to allow benefits to flow an additional month — until early August — to give jobless Marylanders more time to find work.

“It’s not like he’s saving the state money by doing this,” Montgomery County Executive Marc B. Elrich (D) said.

Late on Wednesday, the nine Democratic members of Maryland’s congressional delegation issued a statement urging Hogan to reconsider cutting off the benefits.

“…The governor unnecessarily bowed to partisan pressure and ignored the needs of struggling workers and families. We urge the governor to reconsider this decision, which will cost our state money in the long run — and wastes federal resources we fought hard to secure,” the lawmakers wrote. “Marylanders are anxious to get back to work, but this pandemic is not over and many unemployed Marylanders are still suffering.”

By Bruce DePuyt and Danielle E. Gaines

Hogan Joins GOP Governors in Ending Supplemental Unemployment Aid

June 2, 2021 by Maryland Matters

Maryland will join two dozen other Republican-led states whose governors have decided to end enhanced unemployment benefits, Gov. Lawrence J. Hogan Jr. announced late Tuesday.

The move, which takes effect on July 3, will end the $300 supplemental weekly payment that some out-of-work residents have been receiving under the Federal Pandemic Unemployment Compensation program.

Hogan’s decisions will end unemployment insurance checks at 26 weeks.

A pandemic-era change extended them to 39 weeks, but that will expire early next month.

Hogan’s move also ends a $100-per-week payment available to “mixed earners” — typically gig workers who have multiple sources of income.

In making the announcement, Hogan (R) cited Maryland’s improving economy, the increased availability of COVID-19 vaccines, and the growing number of “Help Wanted” signs springing up around the state.

The moves come as Republican leaders express the concern that unemployment assistance is keeping some workers from seeking new jobs.

“While these federal programs provided important temporary relief, vaccines and jobs are now in good supply,” said Hogan, a potential 2024 candidate for president, in a statement.

“And we have a critical problem where businesses across our state are trying to hire more people, but many are facing severe worker shortages. After 12 consecutive months of job growth, we look forward to getting more Marylanders back to work.”

Democrats said Hogan’s decision will harm working families.

“There have been many thoughtful decisions made by Governor Hogan during this pandemic. This is not one of them,” said Senate President Bill Ferguson (D-Baltimore City) in a statement.

“This rash and rushed decision will hurt Marylanders who have been hit the hardest during the pandemic, having lost jobs through no fault of their own. It feeds into a hard right-wing narrative that denies human dignity, puts profits over people, and puts politics over sound economic research.”

Del. Dereck Davis (D-Prince George’s) said the state should have kept the commitment it made to keep enhanced benefits in place through August — particularly in light of difficulties that the Maryland Department of Labor had getting checks to some applicants.

“It’s easy to make the claim that folks are taking advantage or folks don’t want to work,” Davis said. “I think people do want to work.”

Many of the 24 Republican governors who decided to end supplement benefits in May said the aid served as a crutch. But research distributed by the economics team at JPMorgan Chase last week cast doubt on that theory.

The move to cut federal unemployment benefits seems “tied to politics, not economics,” those economists concluded, according to CNBC.

“While some of these states have tight labor markets and strong earnings growth, many of them do not,” researchers wrote.

Last month, Hogan — a business tycoon before entering politics — hinted that the state would soon curtail supplemental benefits.

“We’re hearing over and over again about businesses not able to staff up because people won’t come back to work,” he told reporters on May 14.

Davis, who chairs the House Committee on Economic Matters, said many of the people who are still out of work are struggling with child care issues, sick parents and other concerns.

He accused the state of “pulling the rug” from people who are in need, despite a commitment to continue passing on federal assistance to unemployed Marylanders through the summer.

“We could have waited. Another two months wasn’t going to kill us,” he said.

According to the statement issued by Hogan’s office, Maryland has “prioritized” the reopening of child care centers. “As of today, 92% of licensed providers in Maryland are open and operating.”

Since March 2020, the State of Maryland has paid out more than $12.3 billion in unemployment benefits to 730,759 recipients, resolving more than 97% of claims, the statement added.

In addition to ending the pass-through of supplemental federal benefits, Maryland has reinstated the requirement that aid recipients engage in three “reemployment activities” each week, beginning on July 4.

Those who fail to do so may become ineligible for future benefits.

Out-of-work Marylanders can submit a job application through the state’s workforce exchange, complete an American Job Center workshop, or attend a job fair.

Additional employment opportunities and services can be found at labor.maryland.gov/employment.

By Bruce DePuyt

Sections

More