Politics & Government

A legislative watchdog says Michigan’s unemployment office failed to catch overpayments and cases of fraud as the agency was hammered with jobless claims during the Great Recession.

The Michigan Auditor General says the mistakes cost taxpayers an estimated $260 million.

Like many states, Michigan’s been forced to borrow money from the federal government – almost $4 billion - to cover its jobless claims as unemployment reached peaks not seen in three decades (higher than 14%).

The Auditor General report found the agency ran into trouble handling all those claims.

The auditor’s sample found thousands of cases where the state accidentally overpaid benefits that were never recovered.

The audit also found instances where the state failed to detect cases of fraud that would have also been punished with big fines.

The unemployment agency is disputing some of the findings where the auditor determined there was fraud. The agency says in the other cases, it’s taking steps to fix the problems uncovered by the Auditor General.

The State House failed to reject the Michigan Civil Service Commission's decision to allow state employees to enjoy domestic partner benefits.

The benefits, originally negotiated between the Granholm administration and about 70% of the public employee unions, are scheduled to go into effect October 1st. The benefits are extended to unmarried partners (gay or heterosexual) and their dependents who have lived together for more than one year.

Michigan Public Radio's Laura Weber reported on yesterday's vote in the State House:

Detroit Mayor Dave Bing says he wants a recount of Detroit’s 2010 census numbers. That data shows the city with its smallest population since 1910.

Bing says he thinks census numbers that fix Detroit’s population at just under 714,000 are wrong.

 Bing says a recount could turn up as many as 40,000 more residents. That would put the city above a key 750,000 person threshold.

The Detroit International Bridge Company, owners of the Ambassador Bridge, has settled a lawsuit with the owners of a bait shop.

Lafayette Bait and Tackle sits near where the Detroit International Bridge Company hopes to build a second span. The company purchased the land to remove what it saw as a final obstacle to their plans.

Both sides in the case agree fault lay primarily with the bait shop’s former landlord, a group called Commodities Export.

There’s been a lot of wailing and gnashing of teeth statewide over the new proposals the governor outlined in Grand Rapids yesterday, the ones especially that will affect local governments.

He proposes to hold back one-third of the revenue sharing money communities get from the state, and release it only if cities, villages and townships adopt certain reforms. Those would include putting all new hires on a pension plan based on what they and their employer put in, a so-called “defined contribution plan.”

The State Senate Reforms, Restructuring and Reinventing committee tomorrow will discuss a bill forcing government workers to pay between 20% to 25% of their health care costs.

Last January, the Michigan Civil Service Commission approved domestic partner benefits for state employees. The benefits were scheduled to go into effect on October 1st.

The ruling went against the Snyder administration's wishes, and the state legislature has been working to overturn the ruling. The State Senate passed a resolution against the domestic partner benefit ruling earlier this month.

Today, the State House is expected to vote on a resolution which would overrule the MCSC's January decision.

Todd Heywood wrote about the resolution in today's Michigan Messenger:

If the House approves the measure, it will be the first time in the history of the MCSC that a decision by the body was overturned by the legislature. Republicans are also seeking a ballot initiative to remove the MCSC from the state constitution, and in the meantime has been working to strip the body of much of its power.

Heywood reports "the House currently has a 63 member GOP majority. But approving this resolution requires a two-thirds super majority, which means 74 votes, so 11 Democrats need to cross party lines in order for the bill to pass."

As MPRN's Rick Pluta reported, the Snyder administration said it objected to MCSC's decision because of the cost - estimated at around $6 million.

The rules were expected to cover 70% of all state employees. Their unmarried partners and dependents who have lived with them for a year or more would be eligible for the benefits. The eligibility is the equal for gay and heterosexual couples.

The benefits had to be equally available to gay and heterosexual couples because 59% of Michigan voters passed a ban on same-sex marriage in 2004. The "defense of marriage amendment" is now part of the Michigan Constitution.