Michigan shutdown begins as mandated by State law - If no Michigan budget is passed as the fiscal year ends, then a Michigan government shut down is mandatory.

Governor Grantham is working with the Legislature to resolve the Michigan shutdown impasse and end Michigan’s budget crisis, but the whole situation reeks of political brinkmanship. Essentially, Michigan is now a laughingstock for the whole nation to watch as the government shutdown quickly creates chaos in essential services.

Neither side will give an inch and with all but the most essential government services shutting down, citizens will quickly grow angry with the recalcitrant politicians. Look for heads to roll in the next election in a huge backlash of angry voters mad about the Michigan shut down voting out the guilty parties.

State agencies affected by Michigan shutdown:

  1. State Courts - Supreme Court & Court of Appeals - Limited staff
  2. State Police - All posts closed - Limited troopers emergency only
  3. State Prisons - Dept of Corrections will remain fully staffed
  4. Secretary of State - All offices closed, online services recommended
  5. Transportation - All work stopped, rest areas closed, 6 bridges closed
  6. Treasury - Closed, critical payments only - debt & unemployment
  7. DNR - All State parks closed, hunting licenses online only
  8. Human Services - Emergency only for critical payments, no new cases
  9. Lottery & Gaming - Lottery sales ceased, no casino gambling either
  10. Liquor & Cigarettes - No liquor sales, cigarettes while tax stamps last

Bottom line: This Michigan government shut down is going to get real messy, real fast.

Late Breaking News: Shut Down Avoided…House passes Continuation Budget…House votes overwhelmingly to pass the “continuation budget” already passed by the Senate to avoid a state shutdown.

In other action, House Democrats pushed a sales tax expansion through the House on a straight party 56-53 vote… Assuming the Governor signs the continuation budget…there will NOT be a shutdown.

From the Detroit News:

LANSING — A state income tax hike to 4.35 percent passed the state House at 10:45 p.m. tonight, headed to the Senate in what could be the last piece of a revenue increase that Gov. Jennifer Granholm requested to avert a midnight state shutdown.Also, the House approved a 30-day continuation of the current budget, which would give legislators more time to formalize the budget deals. The Senate last week approved a different version of the continuation budget and must vote tonight to concur in the House bill.

The moves came amid a flurry of activity tonight, in which the state House also pushed through a 30-day continuation budget and a sales tax on a host of services to provide new revenue. Making no progress late today was any spending reform measures, which have been seen as a Republican key budget compromise.

Update #2
The Michigan legislature and Governor Grantham have put a continuation budget in place and all State employees are being told to report to work as usual.

This is from the Michigan.gov website:

AGREEMENT IS REACHEDState legislators have reached a comprehensive budget agreement to end a government shutdown. State government will be open for business on Monday, October 1 and all state employees should report for your next scheduled shift.

The budget agreement includes reforms and new revenues that will fund the vital work of state government and help Michigan avoid the types of structural budget issues that have contributed to recent financial problems.

And that’s the latest news on the Michigan shutdown.

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