As Michigan Gov. Rick Snyder and lawmakers struggle to erase a looming $1.4-billion state deficit, another deficit nearly three times as large hangs over the head of Michigan employersShe noted that the average time for unemployment benefit recipients is 20 weeks — the same as the new state-paid maximum — a fact confirmed by the Unemployment Insurance Agency. Block said holding down unemployment insurance costs is necessary to keep the cost of doing business competitive with other states.
But Michigan employers had their taxes reduced in 2002, and it's one reason the state unemployment insurance fund was depleted, said Rick McHugh, an Ann Arbor attorney for the Washington-based National Employment Law Project. The organization advocates policies to help unemployed people and low-wage workers.]/b]
McHugh said Michigan borrowed proportionately more from the federal government for unemployment during the 1980s recession than it has now, and didn't reduce the maximum period for benefits. He said the federal loans were paid back through both higher employer taxes and more restricted benefits for jobless workers.
http://www.usatoday.com/news/nation/2011-03-29-michigan-unemployment_N.htm?csp=34news&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+usatoday-NewsTopStories+%28News+-+Top+Stories%29&utm_content=My+YahooSooo, there was a recession during the Reagan years. ? Who knew. :sarcasm: