Mich losing federal benefits hits home

GRAND RAPIDS, Mich. (WOOD) - Tens of thousands of people in Michigan just found out that for the next five months they won't get the money they rely on.

Michigan will stop receiving federal extended unemployment benefits later this month.

Federally-funded extended benefits kick in for states experiencing the greatest economic distress, part of which is based on the unemployment rate. Michigan's unemployment rate is currently at 9.9 percent down from 11.4 percent in 2010.  

Since so many people were without work in past years, unemployed workers could get benefits for 99 weeks. But starting this month, that number will drop to 79 weeks.

Ken Estelle with Feeding America West Michigan Food Bank says the lower unemployment rate isn't something to cheer. He knows there's still a great need for food assistance across Michigan. Now that many won't have the unemployment benefits they rely on, Estelle expects even more will need food assistance.

"I just like people to understand that there's still a need and that even though the unemployment numbers may be getting better there are many families still looking for that food assistance, " says Estelle.

The new numbers also mean 20,000 to 30,000 people like Deb Hoogeboom will lose their unemployment benefits in two weeks.

Hoogeboom got laid off in April when a JC Penney call center closed down. To make matters worse, two weeks later doctors diagnosed her with breast cancer. Then the chemo nearly killed her and she's been hospitalized three times since.

"So i have a lot of bills coming in for that and now I'll have no income to pay for that so what do I tell those bills people, you know?" said Hoogeboom.

Michigan's unemployment rate isn't high enough for the federal government's extended unemployment benefits. Unless the rate is high and getting higher we don't get that money.

"Obviously that will put a bigger burden on families that are beneftting from that unemployment and we expect that that will translate into even a greater need for food assistance," said Estelle. He says it's a call for action for people to donate and help those still in need.

Michigan could get those extended benefits back, but that's not a good thing either. More people would have to lose their jobs.

The Bureau of Labor Statistics will look at Michigan's unemployment rate again in about three months.

If it climbs to 11% from the current 9.9%, Michigan will qualify once again.