Michigan facing possible government shutdown during budget negotiations stalemate
The state of Michigan is facing a potential government shutdown due to ongoing budget negotiation stalemates between the Democratic-controlled Senate and the Republican-controlled House. Although both chambers have passed thier own budget proposals, they have not reached an agreement on funding or cuts. Governor Gretchen Whitmer must sign a unified budget by october 1 to prevent a shutdown. The Senate’s budget is larger than Whitmer’s initial proposal and excludes certain tax measures she suggested, while the House’s budget is notably smaller and framed by Republicans as reducing government waste. Despite recent meetings among key leaders, no considerable progress has been made, and contingency plans for a partial shutdown have begun. If a shutdown occurs, it could result in the closure of state parks, secretary of state offices, and the potential layoff of up to 50,000 state employees. Michigan remains the only state without a budget for the upcoming fiscal year.
Michigan facing possible government shutdown during budget negotiations stalemate
Michigan is facing another statewide government shutdown as budget negotiations remain stalled in the state legislature.
The Democratic-controlled state Senate and the Republican-controlled House have each passed their version of a state budget, but they have not been able to agree on some funding or cuts. Gov. Gretchen Whitmer (D-MI) must sign a budget passed by both chambers of the Statehouse by Oct. 1 to avoid a government shutdown.
The State Budget Office began “contingency planning” for a partial state government shutdown earlier this month, but officials have said they remain hopeful that a budget can be passed in time.
“We’re continuing ongoing negotiations, and we’re hopeful that we’ll have a deal in place by the deadline. While we have begun contingency planning for different scenarios, it’s still too early in the process to determine what a shutdown would look like. Our focus remains on enacting a full budget that protects Michiganders and our economy,” State Budget Office spokeswoman Lauren Leeds said in an email to the Washington Examiner.
Michigan is the only state left without a budget passed for the next fiscal year.
The state Senate-approved budget, which was passed in May, is significantly different from the one Whitmer proposed in February. Its $84.6 billion budget was more than a billion dollars bigger than what Whitmer proposed. It also did not include Whitmer’s proposal for a 32% wholesale tax on vaping and other nontobacco nicotine products.
The Michigan House passed its $78.5 billion budget proposal in August. It is around $4 billion lower than the current budget, and Republicans have framed it as one that cuts government waste.
Leaders in both chambers have expressed disagreements over how to move forward. Last month, Whitmer met with Michigan House Speaker Matt Hall, a Republican, and Michigan Senate Majority Leader Winnie Brinks, a Democrat, in hopes of advancing the negotiation process. Whitmer spokesman Bobby Leddy said at the time it was a “productive meeting,” but no progress in negotiations has been made.
“Passing a budget on time is a top priority for Senate Democrats — but we will not get backed into a corner and settle for a bad deal for our kids and schools,” Brinks said in a social media post Friday.
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If the Michigan government shut down, state parks would close, secretary of state offices, including those where people renew licenses, would close, and up to 50,000 state employees would be at risk of layoffs.
The Michigan state government last had budget shutdowns in 2007 and 2009, but each lasted just a few hours.
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