Michigan Lawmakers Consider Extra Time to Prevent Government Shutdown
As Michigan lawmakers approach the end of the 2025 fiscal year on September 30, 2023, Governor Gretchen Whitmer and legislative leaders acknowledge a budget completion deadline will not be met. They stated efforts to finalize the 2026 budget would be completed within the upcoming week.
State Budget Deadline and Legislative Actions
In a joint statement, Whitmer, House Speaker Matt Hall (R-Richland Township), and Senate Majority Leader Winnie Brinks (D-Grand Rapids) assured residents that government operations would continue unaffected, although the specifics were not outlined. The Michigan Legislature had previously passed a 30-day “continuation budget” in 2009 to comply with constitutional spending requirements.
Article 9, Section 17 of the Michigan Constitution mandates that state treasury funds can only be utilized with appropriated laws. State Rep. Alabas Farhat (D-Dearborn) noted that various options for maintaining funding were being considered, including executive and emergency powers vested in the governor.
Continuity of Government Services
Whitmer emphasized that state government would continue functioning normally into October. She expressed optimism about a bipartisan agreement that would address key issues such as road repairs, educational funding, tax cuts, and health care access. Rep. Bryan Posthumus (R-Rockford) added that while the state can incur expenses, it cannot pay bills without an approved budget.
- The final budget may show an $800 million reduction in the general fund compared to the previous year.
- State employees have been assured they will continue to receive pay, even if the budget is late.
Contentions Surrounding Tax and Budget Agreements
A contentious proposal involving a 24% wholesale tax on marijuana, tied to road funding, spurred protests at the Capitol. This tax, expected to generate approximately $420 million annually, faced significant opposition as advocates for the marijuana industry rallied against it.
Senator Jon Bumstead (R-North Muskegon) expressed doubt about the Legislature’s ability to finalize the budget by the end of the day. He signaled concerns regarding the marijuana tax’s fairness and highlighted that increasing taxes so soon after legalization could be problematic.
Implications of a Potential Shutdown
The last state government shutdown occurred in 2009 and lasted only a couple of hours into the new fiscal year, immediately resolving through a continuation budget. If a shutdown were to happen this time, state services such as park operations and road construction projects might be among the first to face interruptions.
The Michigan Supreme Court announced that if a government shutdown occurs, all filing deadlines in relevant courts would be extended in tandem with the shutdown duration. A potential overlap between state and federal government shutdowns starting October 1 would mark an unprecedented event in Michigan.
Public Sentiment and Political Scrutiny
As negotiations continued, Detroit Mayor Mike Duggan expressed skepticism regarding the progress, indicating that dysfunction in Lansing persists. He criticized the system and noted that any last-minute spending deal would not significantly alter perceptions of the legislative process.
As lawmakers continue to navigate budget uncertainties, Michigan residents remain watchful of potential changes in service provisions and tax implications, underscoring the importance of timely budget approvals.
