22 December 2009

Senate Passes Bill To Benefit Michigan Companies, Jobless

Detroit News



Washington -- The Senate passed the $636 billion Department of Defense appropriations bill this morning that includes millions of dollars for military-related projects by Michigan companies, plus an extension of unemployment benefits and COBRA health insurance subsidies for laid-off workers.

The Senate passed the bill, passed 88-10, with Sens. Carl Levin, D-Detroit, and Debbie Stabenow, D-Lansing, voting for it. The bill goes to President Barack Obama, who is expected to sign it.

"It was a little bit of struggle to get here, but we got here," said Sen. Majority Leader Harry Reid, referring to the massive snowfall that began Friday night and is blanketing Washington.

The Senate squeezed in the vote to fund the Fiscal Year 2010 military in its ongoing debate on overhauling the nation's health care system. Senate Democrats hope to get to a final vote before the Christmas holiday next Friday.

The DoD bill also includes $128 billion to fund the wars in Iraq and Afghanistan.

The precise dollar amount that Michigan companies will receive in the Defense bill isn't known because companies must compete for the contracts. The amount will easily top $100 million, however, because much of the funding goes to projects already under way in Michigan.

The bill also sets aside $320 million for the Warren-based Army Tank Automotive Research, Development and Engineering Center and its National Automotive Center.


That money will support such research into protecting Army vehicles against rocket propelled grenades and other explosives, strengthening combat and tactical vehicle armor, and developing fuel cell and hybrid electric vehicles.

The legislation also funds programs of the Army's TACOM Life Cycle Management Command in Warren, including the Abrams main battle tank, the Bradley Fighting Vehicle and the Stryker Armored Vehicle.

Michigan lawmakers requested funds for projects in which Michigan companies will be leading contenders for the contracts, including:

• $1.2 million to develop rooftop photovoltaic systems for military housing by United Solar Ovonic in Auburn Hills.

• $219 million to continue work on the lightweight 155mm howitzer, which Howmet Castings of Whitehall has worked on.

• $6.4 million for a program that Peckham Industries of Lansing has been part of to create multi-climate clothing for soldiers.

• $2 million for laser scanning technology that NVision of Wixom is developing.

• $1.2 million to continue work by Cybernet Systems Corp. of Ann Arbor on a shipboard wireless device for Navy ships.

• $1.6 million to continue development by Dexter Research Center in Dexter on a security sensor to protect military intallations from chemical and biological attacks.


"This bill ensures that Michigan's factories and research centers will continue their cutting-edge work that has helped make our military the strongest the world has ever seen," said Levin, the chairman of the Senate Armed Services Committee.

Stabenow said the funds will help create jobs in the state.

"I am very pleased that this legislation not only provides critical funding to support our troops, including a 3.4 percent increase in military pay, but also invests in my priorities for alternative energy research and more energy-efficient combat vehicle technology," Stabenow said.

The bill also extends a federal subsidy that helps laid-off workers pay for health care from nine months to 15 months.

Under the program, the federal government picks up 65 percent of the cost of an individual's health insurance with their former employer.

The subsidy, initially offered for nine months, began in March, meaning some laid-off workers got kicked out of the program Dec. 1. They'll be allowed to continue for six months, and be reimbursed for the subsidy they didn't receive for December, once the bill becomes law.

Eligibility to tap into the COBRA program for Michigan health insurance was set to expire Dec. 31, but the DoD bill extends it through Feb. 28. The bill also extended the expiration date of expanded unemployment benefits from Dec. 31 to Feb. 28.

Without the extension of the jobless benefits program, 70,000 Michiganians will cash their last unemployment checks by mid-February.

Last month, Congress passed an extra six weeks of unemployment benefits for hard-hit states such as Michigan. But because there were too few weeks left on the calendar before the cut-off date of Dec. 31, virtually no one in Michigan would have qualified for the six extra weeks.

Michigan provides a maximum of $362 per week in unemployment benefits to previously full-time workers, plus an additional $25 per week provided by the Recovery and Reinvestment Act, for a total of $387 per week. The weekly $25 bonus was also in the DoD bill.

Levin said the steps will "soften the blow of unemployment."

About 470,000 Michiganians are receiving unemployment benefits.

No comments: