The director of Michigan’s unemployment agency said Thursday there was an unprecedented increase in efforts to defraud the system as the COVID-19 crisis
Michigan unemployment agency director to lawmakers: Fraud is a constant battle
Adrienne Roberts
Detroit Free Press
Nine months after Michigan s Unemployment Insurance Agency notified claimants of fraudsters attempts to steal benefits, the acting director of the agency answered questions Thursday about progress made in identifying those claims and getting benefits to legitimate filers.
Before the Michigan Senate Economic and Small Business Development Committee, Liza Estlund Olson testified before the group of bipartisan lawmakers virtually. The lawmakers were in Lansing.
Olson touted the strength of the Unemployment Insurance Trust Fund which the agency said has more than $500 million available for benefits. Olson said it s unlikely the state will need to borrow from the federal government in order to cover benefits in 2021.
The Michigan Unemployment Insurance Agency announced on Thursday that it is “highly unlikely” the agency will need to borrow from the federal government to cover benefits in 2021.
Labor and Economic Opportunity
UIA Update: Trust Fund remains healthy, Michigan unlikely to borrow in 2021
February 18, 2021
Based on current unemployment claims activity and economic conditions, the Unemployment Insurance Agency today announced that it is highly unlikely the Agency will need to borrow from the federal government to cover unemployment benefits in 2021.
Currently, Michigan has one of the healthiest trust funds in the nation, with over $500M available for unemployment benefits and is one of few states that has yet to borrow from the fund. States such as California, Ohio and Texas started borrowing in spring 2020.
Each state maintains its own Unemployment Insurance Trust Fund (UITF) reserve to pay for state UI benefits. The fund is built from state taxes paid by employers. States can take on a title XII loan from the federal government if their own reserves are insufficient.