(Graphic: Michigan Unemployment Insurance Agency)
Michigan's $4.6 billion unemployment fund had more cash on hand at the outset of the public health crisis than Ohio, Indiana and Illinois combined — and twice as much savings as New York State before the pandemic shut down America's largest city, according to an analysis by Crain's Detroit Business.
That being said, the insatiable demand from unemployed and underemployed Michigananders could spell big trouble for the fund.
The healthy unemployment trust fund, which took nine years to build up, could be drained in a matter of six months if nearly 1 million jobless workers draw benefits for an average of 19.4 weeks, an analysis from the W.E. Upjohn Institute for Employment Research shows, according to Chad Livengood of Crain's.
"We feel (the trust fund) is in good financial shape, but obviously the longer this goes and the more claims that come in, the more concerning it gets," Whitmer said Thursday.
Some of the fund will be replenished by Michigan employers paying into the fund annually, but the state could need to borrow.
