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Alarmed at the prospect that needy families will be hurt by Gov. Lawrence J. Hogan Jr.鈥檚 decision to end supplemental unemployment benefits in early July, members of the General Assembly scrambled on Wednesday to blunt 鈥� and perhaps block 鈥� his action.
Legislative leaders sought advice from Attorney General Brian E. Frosh (D) about a possible special session 鈥� and a powerful committee chairman said he will introduce legislation to advance the effective date of Maryland鈥檚 $15-per-hour minimum wage law.
The flurry of activity was set in motion by Hogan鈥檚聽聽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 鈥渕ixed earners鈥� 鈥� typically gig workers who have multiple sources of wage income 鈥� 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鈥檚 improving economy and the surge in the state鈥檚 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 鈥� which expanded eligibility to the self-employed, independent contractors and gig workers 鈥� and those receiving payments after extended periods out of work 鈥� more than 86,000 people as of May 8 鈥� would lose benefits entirely under Hogan鈥檚 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聽, Senate President Bill Ferguson (D-Baltimore City) and Unemployment Insurance Oversight Committee co-chairwoman Kathy Klausmeier (D-Baltimore County) wrote, 鈥淪olving problems requires more than buying into partisan narratives that ignore the very real plight of countless Marylanders facing complex futures.鈥�
The lawmakers urged the governor to reconsider his actions and to look at ways to incentivize people to 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, 鈥漮ur chamber will be forced to consider all other tools at our disposal to ensure our state鈥檚 prosperity.鈥�
The fiscal year 2022 budget was approved by the General Assembly earlier this year 鈥� 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.
鈥淚t鈥檚 going to be tough to get it done right away, but it may be possible,鈥� he said. 鈥淲e鈥檒l see.鈥�
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.
鈥淭he fact is, if you鈥檙e 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,鈥� he said. 鈥淭hey spend it.鈥�
Frosh called the supplemental payments 鈥渁 lifeline for folks who are unemployed鈥� 鈥� and he said GOP claims that benefits discourage job-seeking are 鈥渇allacious.鈥�
Although the unemployment rate has dropped since the height of the pandemic, the attorney general said many jobs don鈥檛 pay enough for people to make ends meet, a claim echoed by Del. Dereck E. Davis (D-Prince George鈥檚), the chairman of the Economic Matters Committee.
Davis told聽Maryland Matters聽he will introduce legislation in January to move up the effective date of Maryland鈥檚 $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.
鈥淚 don鈥檛 think we need to take away the benefits. I think we need to increase the wages,鈥� Davis said. 鈥淚t鈥檚 simple economics.鈥�
Davis said he was motivated to offer the legislation in response to Hogan鈥檚 actions on Tuesday.
Legislative Black Caucus Chairman Darryl Barnes (D-Prince George鈥檚) will co-sponsor the measure, which has the support of Speaker Adrienne A. Jones (D-Baltimore County).
鈥淚f this is strictly dollars and cents, what that tells me is that they鈥檙e not paying enough,鈥� Davis said.
Senate Minority Leader Bryan W. Simonaire (R-Anne Arundel) said Davis鈥檚 proposal buttresses his belief that the General Assembly is lurching to the left.
鈥淚t鈥檚 a constant attack on small business, without the balance,鈥� he said. 鈥淭his is just another way they can redistribute wealth. 鈥hank God we have Hogan in office to provide a little balance to the legislature.鈥�
Davis said he will pre-file his bill 鈥� and he intends to hold a hearing on it at 2 p.m. on the first day of the 2022 session.
The state鈥檚 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 鈥済reater misery.鈥�
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鈥檚 economy weather the pandemic because they are 鈥渆conomic multipliers.鈥�
鈥淲e鈥檙e giving up, voluntarily, $1.5 billion in additional economic stimulus,鈥� he said. 鈥淎nd it鈥檚 not even our money. It鈥檚 coming from Washington.鈥�
鈥淭his is about compassion for those who are suffering through no fault of their own,鈥� Franchot added. 鈥淭he end of the pandemic is in sight. We owe them a bridge to it.鈥�
House Minority Whip Kathy Szeliga (R-Baltimore and Harford counties) applauded Hogan鈥檚 action.
鈥淲ith so many businesses unable to fully operate because they cannot find workers, it makes sense,鈥� she said. 鈥淭here are 鈥榟elp wanted鈥� signs everywhere. Americans are logical. If you pay them to stay home, they will. It鈥檚 time to get people back in the labor market and working for a brighter future for themselves and their families.鈥�
An organization representing small business owners also said it welcomed Hogan鈥檚 decision.
鈥淪mall 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鈥檚 latest jobs report,鈥� said Mike O鈥橦alloran, the head of NFIB-Maryland.
鈥淭he Governor is right to call this a 鈥榗ritical problem.鈥� Now that capacity restrictions and closings are behind us, we鈥檙e hopeful these jobs will quickly be filled as the summer is unofficially underway.鈥�
Even if lawmakers don鈥檛 return to Annapolis, they hope to pressure him to allow benefits to flow an additional month 鈥� until early August 鈥� to give jobless Marylanders more time to find work.
鈥淚t鈥檚 not like he鈥檚 saving the state money by doing this,鈥� Montgomery County Executive Marc B. Elrich (D) said.
Late on Wednesday, the nine Democratic members of Maryland鈥檚 congressional delegation issued a statement urging Hogan to reconsider cutting off the benefits.
鈥溾�he 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 鈥� and wastes federal resources we fought hard to secure,鈥� the lawmakers wrote. 鈥淢arylanders are anxious to get back to work, but this pandemic is not over and many unemployed Marylanders are still suffering.鈥�
Danielle E. Gaines contributed to this report.聽
bruce@marylandmatters.org
