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News Maryland News

Democrats Slam Hogan’s Decision to End Expanded Unemployment Benefits, Look to Block Action

June 3, 2021 by Maryland Matters

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Alarmed at the prospect that needy families will be hurt by Gov. Lawrence J. Hogan Jr.’s decision to end supplemental unemployment benefits in early July, members of the General Assembly scrambled on Wednesday to blunt — and perhaps block — his action.

Legislative leaders sought advice from Attorney General Brian E. Frosh (D) about a possible special session — and a powerful committee chairman said he will introduce legislation to advance the effective date of Maryland’s $15-per-hour minimum wage law.

The flurry of activity was set in motion by Hogan’s decision to end the $300-per-week supplemental unemployment insurance benefit that some Marylanders have been collecting, effective July 3.

The state will also stop providing a $100-per-week payment that “mixed earners” — typically gig workers who have multiple sources of wage income — have been receiving.

In addition, people who have been out of work for more than 26 weeks will see their benefits end.

Congress approved enhanced payments last year in response to the COVID-19 pandemic.

In announcing his actions, Hogan pointed to the state’s improving economy and the surge in the state’s supply of vaccines. Even though 70% of adults have received at least one dose of a COVID-19 vaccine, the governor said many employers are having trouble finding workers.

Two dozen Republican governors have taken similar steps, with many arguing that jobless benefits create a disincentive to seek work.

More than 175,000 Marylanders receiving Pandemic Unemployment Assistance — which expanded eligibility to the self-employed, independent contractors and gig workers — and those receiving payments after extended periods out of work — more than 86,000 people as of May 8 — would lose benefits entirely under Hogan’s action.

All Marylanders receiving unemployment would stop receiving an enhanced $300 payment. As of May 15, there were 42,895 continued unemployment claims in the state; an additional 8,625 new claims were filed in the week ending May 22.

In a letter to Hogan, Senate President Bill Ferguson (D-Baltimore City) and Unemployment Insurance Oversight Committee co-chairwoman Kathy Klausmeier (D-Baltimore County) wrote, “Solving problems requires more than buying into partisan narratives that ignore the very real plight of countless Marylanders facing complex futures.”

The lawmakers urged the governor to reconsider his actions and look at ways to incentivize people back into the labor force, such as those adopted by Colorado.

If Hogan fails to alter his position on supplemental unemployment benefits, the leaders wrote, ”our chamber will be forced to consider all other tools at our disposal to ensure our state’s prosperity.”

The fiscal year 2022 budget was approved by the General Assembly earlier this year — and lawmakers were unclear on Wednesday whether they have the power to force Hogan to reverse his stance. Lawmakers adjourned in April and are not scheduled to return to Annapolis until January.

Comptroller Peter V.R. Franchot (D) urged lawmakers to consider an emergency special session to insist that Hogan keep the payments flowing.

In an interview, Frosh said it would be a challenge for lawmakers to find a way to block Hogan immediately.

“It’s going to be tough to get it done right away, but it may be possible,” he said. “We’ll see.”

A former legislator from Montgomery County, Frosh hammered Hogan for ending federally-funded benefits at a time when many out-of-work residents have yet to find new jobs.

“The fact is, if you’re looking to help the economy and help businesses, the best thing you can do is put money in the hands of low-income families, because it goes right back out the door,” he said. “They spend it.”

Frosh called the supplemental payments “a lifeline for folks who are unemployed” — and he said GOP claims that benefits discourage job-seeking are “fallacious.”

Although the unemployment rate has dropped since the height of the pandemic, the attorney general said many jobs don’t pay enough for people to make ends meet, a claim echoed by Del. Dereck E. Davis (D-Prince George’s), the chairman of the Economic Matters Committee.

Davis told Maryland Matters he will introduce legislation in January to move up the effective date of Maryland’s $15-an-hour minimum wage law by 2 1/2 years.

Under his proposal, employers with 15 or more workers would be required to pay at least $15/hour effective on July 1, 2022, instead of January 1, 2025.

Employers with fewer than 15 employees would have to boost pay starting on July 1, 2023, instead of January 1, 2026.

“I don’t think we need to take away the benefits. I think we need to increase the wages,” Davis said. “It’s simple economics.”

Davis said he was motivated to offer the legislation in response to Hogan’s actions on Tuesday.

Legislative Black Caucus Chairman Darryl Barnes (D-Prince George’s) will co-sponsor the measure, which has the support of Speaker Adrienne A. Jones (D-Baltimore County).

“If this is strictly dollars and cents, what that tells me is that they’re not paying enough,” Davis said.

Senate Minority Leader Bryan W. Simonaire (R-Anne Arundel) said Davis’s proposal buttresses his belief that the General Assembly is lurching to the left.

“It’s a constant attack on small business, without the balance,” he said. “This is just another way they can redistribute wealth. … Thank God we have Hogan in office to provide a little balance to the legislature.”

Davis said he will pre-file his bill — and he intends to hold a hearing on it at 2 p.m. on the first day of the 2022 session.

The state’s top fiscal officers also hammered Hogan for ending supplemental benefits.

Treasurer Nancy K. Kopp (D) said the move will cause the most harm to single women with children or older dependents, who will now live in “greater misery.”

Franchot, a candidate for governor, noted that the supplemental federal benefits are set to expire on Sept. 6. He said pandemic-era stimulus payments to individuals and businesses have helped the state’s economy weather the pandemic because they are “economic multipliers.”

“We’re giving up, voluntarily, $1.5 billion in additional economic stimulus,” he said. “And it’s not even our money. It’s coming from Washington.”

“This is about compassion for those who are suffering through no fault of their own,” Franchot added. “The end of the pandemic is in sight. We owe them a bridge to it.”

Del. Kathy Szeliga (R-Baltimore and Harford counties) applauded Hogan’s action.

“With so many businesses unable to fully operate because they cannot find workers, it makes sense,” she said. “There are ‘help wanted’ signs everywhere. Americans are logical. If you pay them to stay home, they will. It’s time to get people back in the labor market and working for a brighter future for themselves and their families.”

An organization representing small business owners also said it welcomed Hogan’s decision.

“Small business owners have been among the hardest hit by the COVID-19 crisis. While they are seeing their sales grow amidst a steady economic recovery, a record 44% of owners reported job openings that could not be filled in NFIB’s latest jobs report,” said Mike O’Halloran, the head of NFIB-Maryland.

“The Governor is right to call this a ‘critical problem.’ Now that capacity restrictions and closings are behind us, we’re hopeful these jobs will quickly be filled as the summer is unofficially underway.”

Even if lawmakers don’t return to Annapolis, they hope to pressure him to allow benefits to flow an additional month — until early August — to give jobless Marylanders more time to find work.

“It’s not like he’s saving the state money by doing this,” Montgomery County Executive Marc B. Elrich (D) said.

Late on Wednesday, the nine Democratic members of Maryland’s congressional delegation issued a statement urging Hogan to reconsider cutting off the benefits.

“…The governor unnecessarily bowed to partisan pressure and ignored the needs of struggling workers and families. We urge the governor to reconsider this decision, which will cost our state money in the long run — and wastes federal resources we fought hard to secure,” the lawmakers wrote. “Marylanders are anxious to get back to work, but this pandemic is not over and many unemployed Marylanders are still suffering.”

By Bruce DePuyt and Danielle E. Gaines

The Spy Newspapers may periodically employ the assistance of artificial intelligence (AI) to enhance the clarity and accuracy of our content.

Filed Under: Maryland News Tagged With: benefits, business, Economy, Gov. Larry Hogan, jobless, Maryland, Minimum Wage, supplemental, unemployment, wages

Hogan Joins GOP Governors in Ending Supplemental Unemployment Aid

June 2, 2021 by Maryland Matters

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Maryland will join two dozen other Republican-led states whose governors have decided to end enhanced unemployment benefits, Gov. Lawrence J. Hogan Jr. announced late Tuesday.

The move, which takes effect on July 3, will end the $300 supplemental weekly payment that some out-of-work residents have been receiving under the Federal Pandemic Unemployment Compensation program.

Hogan’s decisions will end unemployment insurance checks at 26 weeks.

A pandemic-era change extended them to 39 weeks, but that will expire early next month.

Hogan’s move also ends a $100-per-week payment available to “mixed earners” — typically gig workers who have multiple sources of income.

In making the announcement, Hogan (R) cited Maryland’s improving economy, the increased availability of COVID-19 vaccines, and the growing number of “Help Wanted” signs springing up around the state.

The moves come as Republican leaders express the concern that unemployment assistance is keeping some workers from seeking new jobs.

“While these federal programs provided important temporary relief, vaccines and jobs are now in good supply,” said Hogan, a potential 2024 candidate for president, in a statement.

“And we have a critical problem where businesses across our state are trying to hire more people, but many are facing severe worker shortages. After 12 consecutive months of job growth, we look forward to getting more Marylanders back to work.”

Democrats said Hogan’s decision will harm working families.

“There have been many thoughtful decisions made by Governor Hogan during this pandemic. This is not one of them,” said Senate President Bill Ferguson (D-Baltimore City) in a statement.

“This rash and rushed decision will hurt Marylanders who have been hit the hardest during the pandemic, having lost jobs through no fault of their own. It feeds into a hard right-wing narrative that denies human dignity, puts profits over people, and puts politics over sound economic research.”

Del. Dereck Davis (D-Prince George’s) said the state should have kept the commitment it made to keep enhanced benefits in place through August — particularly in light of difficulties that the Maryland Department of Labor had getting checks to some applicants.

“It’s easy to make the claim that folks are taking advantage or folks don’t want to work,” Davis said. “I think people do want to work.”

Many of the 24 Republican governors who decided to end supplement benefits in May said the aid served as a crutch. But research distributed by the economics team at JPMorgan Chase last week cast doubt on that theory.

The move to cut federal unemployment benefits seems “tied to politics, not economics,” those economists concluded, according to CNBC.

“While some of these states have tight labor markets and strong earnings growth, many of them do not,” researchers wrote.

Last month, Hogan — a business tycoon before entering politics — hinted that the state would soon curtail supplemental benefits.

“We’re hearing over and over again about businesses not able to staff up because people won’t come back to work,” he told reporters on May 14.

Davis, who chairs the House Committee on Economic Matters, said many of the people who are still out of work are struggling with child care issues, sick parents and other concerns.

He accused the state of “pulling the rug” from people who are in need, despite a commitment to continue passing on federal assistance to unemployed Marylanders through the summer.

“We could have waited. Another two months wasn’t going to kill us,” he said.

According to the statement issued by Hogan’s office, Maryland has “prioritized” the reopening of child care centers. “As of today, 92% of licensed providers in Maryland are open and operating.”

Since March 2020, the State of Maryland has paid out more than $12.3 billion in unemployment benefits to 730,759 recipients, resolving more than 97% of claims, the statement added.

In addition to ending the pass-through of supplemental federal benefits, Maryland has reinstated the requirement that aid recipients engage in three “reemployment activities” each week, beginning on July 4.

Those who fail to do so may become ineligible for future benefits.

Out-of-work Marylanders can submit a job application through the state’s workforce exchange, complete an American Job Center workshop, or attend a job fair.

Additional employment opportunities and services can be found at labor.maryland.gov/employment.

By Bruce DePuyt

The Spy Newspapers may periodically employ the assistance of artificial intelligence (AI) to enhance the clarity and accuracy of our content.

Filed Under: Maryland News Tagged With: benefits, business, Economy, federal, Gov. Larry Hogan, Maryland, supplemental, unemployment

Hogan Announces Second $250 Million Business Relief Plan

October 23, 2020 by Maryland Matters

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Gov. Lawrence J. Hogan Jr. (R) on Wednesday pulled $250 million from the state’s rainy day fund, intending to keep small businesses open during the COVID-19 pandemic through help with rent, employee salaries, upgrades and other efforts.

During a State House press conference, Hogan said the state’s economic and health recoveries depend on everyday Marylanders continuing to follow safety guidance, while he also pushed some of Maryland’s larger counties to reopen businesses further.

The governor also chided the rate that smaller counties have spent federal stimulus money; only about one-third of $362 million in CARES Act funding directed to 19 counties in the state has been spent so far, with a deadline of Dec. 31.

Hogan said the new state funding would also be required to be spent by the end of the year, and suggested that counties use their unspent federal stimulus money to create matching grants.

“I have directed our teams in each agency to ensure that this much-needed funding gets out the door to our struggling citizens and small businesses as quickly as possible,” Hogan said.

The governor’s relief plan announced Wednesday includes:

  • $50 million for the Maryland Small Business COVID-19 Relief Grant Fund; the new infusion brings total state spending for fund to $145 million since March and will clear a backlog of all applications that have been submitted.
  • $50 million in new relief for restaurants, which can be used to help them buy improvements including HVAC filtration, outdoor dining amenities, technology upgrades to help with carryout and delivery orders, protective equipment for employees, or to help with rent. This money will go to counties, which will distribute it to qualifying restaurants.
  • $20 million for grants from the Maryland Department of Housing and Community Development to help businesses and entertainment venues in the state’s “Main Street Maryland” and “Baltimore Main Streets” programs.
  • $20 million to the COVID-19 Layoff Aversion Fund. This program already disbursed $20 million through the Maryland Department of Labor, and has saved 9,000 jobs, Hogan said.
  • Additional funding includes $5 million to the Maryland Small Business Development Financing Authority, $2 million for local tourism efforts, and $3 million for arts organizations and artists.

Another $100 million is set aside as an “emergency response fund,” which would allow the state to immediately direct money to areas of economic concern in the future, Hogan said.

The spending will be “critical to the thousands of struggling restaurants, small businesses and main streets across the state who are attempting to weather this crisis,” the governor said.

“Equally important to their survival will be all 24 jurisdictions finally moving into stage three of the Maryland strong roadmap to recovery plan,” Hogan said. State law allows counties to reopen at a pace slower than the statewide recommendations, depending on local health concerns.

Some of Maryland’s larger jurisdictions, where COVID-19 case rates have been higher, continue to limit certain businesses, including indoor dining.

“They had particular situations on the ground that caused them to go a little slower, which they thought was prudent,” Hogan said. But now, he said he believes health metrics in the counties warrant wider reopening efforts.

“We’re trying to get the schools open, we’re trying to get the businesses open,” Hogan said.

Overall, Maryland’s economy is rebounding faster than other states, but more help is still needed for small businesses, Hogan said.

“Our economy is doing better than the country and most almost all the states in America, but it’s still really bad. It’s not it’s not a great situation for all these hardworking, struggling folks,” he said.

The governor continued to call on federal lawmakers to get moving on a second round of nationwide stimulus relief.

“We need both parties in Washington to stop playing politics to end the gridlock and to get this done for the American people,” Hogan said. “Our small business community and our struggling Marylanders who depend on them for their jobs cannot afford to wait any longer.”

Comptroller Peter V.R. Franchot (D), who has been instigating for a state-level small business stimulus, including at Wednesday’s Board of Public Works meeting chaired by Hogan, said after the announcement that the proposal was insufficient.

Franchot, a likely candidate for governor in 2022, has suggested an infusion of at least $500 million, either from 2020 surplus funds, the state’s rainy day fund, or through borrowing.

“Today’s announcement by Governor Hogan is a good start, but it’s simply not enough,” Franchot said. “Contrary to the Governor’s analysis of our fiscal posture, we are in a position to do more without taking another penny from the Rainy Day Fund.”

Franchot also noted that $100 million of Hogan’s proposal is not yet earmarked for relief.

“Just two years ago, the State of Maryland was willing to pony up $8.6 Billion to lure Amazon’s East Coast headquarters. Surely, we can do better than letting tens of thousands of small businesses, nonprofits, and Main Street communities fight over scraps,” Franchot said in a statement.

Hogan said during the press conference that his administration landed on the $250 million figure because it would leave the state’s rainy day fund with about $1 billion, which has been the state’s longtime recommended reserve level.

Hogan also cautioned Wednesday that the state is monitoring a small uptick in coronavirus-related hospitalizations in the past week and that small gatherings and parties continue to be the number one source of new cases in the state.

“We can’t let our guard down and we should remain vigilant ― even when we are in close contact with the people that we know and love,” Hogan said. “Outdoor activity continues to be much safer than indoor activity, and frequent hand washing remains a critically important tool. Following these simple guidelines will keep us firmly on the road to recovery and help us slow the spread, prevent the surge and keep Maryland open for business.”

By Danielle E. Gaines

The Spy Newspapers may periodically employ the assistance of artificial intelligence (AI) to enhance the clarity and accuracy of our content.

Filed Under: Maryland News Tagged With: business, Covid-19, Economy, franchot, Hogan, pandemic, rainy day fund, relief, small businesses

Kent County Will Offer 75 $1,000 COVID-19 Small Business Grants

May 6, 2020 by John Griep

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Kent County will offer $1,000 COVID-19 relief grants to the first 75 small businesses that qualify.

Businesses will be able to apply online at https://www.kentcounty.com/business/business-support/incentives/grants beginning at 10 a.m. Thursday, May 7. Applications will close at 5 p.m. Friday, May 15.

Applications will be date and time stamped upon submittal of the online form and the grants will be provided to the first 75 eligible businesses.

The online application should take 10 minutes or less, Jamie Williams, the county’s economic development director, told the Kent County Commissioners Tuesday night.

The grants are being offered to Kent County for-profit businesses established before Jan. 1, 2020, that had no more than four employees on March 5, 2020. Businesses must be in good standing with the county and state.

Businesses that have received some form of COVID-19 relief — such as from the Paycheck Protection Program (PPP) or the Economic Injury Disaster Loan program — will only be considered for county grants if there is money remaining in the program after businesses that have received no funds elsewhere are given grants.

“This gives us a chance to help a few more people that have not been helped by other means,” Kent County Commissioner Ron Fithian said Tuesday night. “We just want to make it go as far as it can.”

The grant funds are coming from the county’s revolving loan fund, which will be dissolved. County officials said that program had never performed as hoped.

According to Kent County Economic Development:

“The Kent County Small Business COVID-19 Emergency Grant Fund will offer working capital to assist Kent County for-profit, small businesses with disrupted operations due to COVID-19.

“Grant assistance is intended to provide interim relief complementing arrangements with the business’ bank(s), business interruption insurance, financial institutions, and federal and state partners.”

Williams also gave the commissioners a brief review of the results of a business impact questionnaire that has been completed by 76 Kent County businesses so far.

The questionnaire continues through Friday and is available online under the Business Resources tab at https://www.kentcounty.com/coronavirus.

Asked if operations had changed as a result of the pandemic and state of emergency, 49% of responding businesses said they had shut down, 33% responded other, 21% were operating with modifications, and 8% were operating normally, Williams said.

About two-thirds of the responding businesses said there had been no layoffs as a result of the pandemic and 63% said no future layoffs are planned. Only 20% of businesses are using telework.

About 42% of businesses said they were are risk or high risk of closing permanently if the state of emergency is prolonged; 11% said the business was at no risk of closing.

Businesses were asked to use a 1-5 scale to quantify the risk of closing, with 1 being no risk and 5 being high risk.

The responses were: 1) 11%;  2) 24%; 3) 24%; 4) 21%; 5) 21%.

The Spy Newspapers may periodically employ the assistance of artificial intelligence (AI) to enhance the clarity and accuracy of our content.

Filed Under: 2 News Homepage, Commerce Homepage, News Portal Highlights Tagged With: business, Covid-19, Economic Development, grant, Kent County, small business

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