State shutdown imminent?

mikelew007 · 09-30-2007, 10:11 PM

As I write this, around 11pm, the Michigan Congress is still debating over the budget for the 2007-2008 fiscal year. If they cannot reach an agreement and pass a budget within the hour, there will be a partial shutdown of the state's government.

I'm surprised this isn't on the CNN news feed.

Quote:

State legislators in Michigan are scrambling to eliminate a budget deficit to avoid a shutdown of much of the state's government on Monday. Lawmakers have been meeting throughout the weekend. Detroit News reporter Mark Hornbeck talks to Andrea Seabrook from the Statehouse in Lansing.
AP News Wire: Business
Mich. Lawmakers Try to Avoid Shutdown

from The Associated Press
LANSING, Mich. September 30, 2007, 9:54 p.m. ET · With only hours left before the new fiscal year, legislators scrambled to reach a budget deal that would plug a $1.75 billion deficit and avert a partial government shutdown.

The Legislature needs create a spending plan in time for the fiscal year to start on Monday or most state government operations will cease, including food safety and gas pump inspections, liquor deliveries, lottery ticket sales, the issuance of driver's licenses, and road construction.
In one of the first signs a shutdown was looming, campers were asked to leave some Michigan state parks Sunday night.
Democratic Gov. Jennifer Granholm has told about 35,000 of the state's more than 53,000 workers not to report to work on Monday if a shutdown occurs. The remaining workers, mostly related to public health and safety, would stay on the job.

The state House and Senate on Sunday night overwhelmingly passed a temporary budget extension that would give them 30 more days to craft a long-term deal and sent it to Granholm for her signature. But the threat of a shutdown remained, since the budget extension can't take effect without passage of measures increasing the income tax rate and either extending the sales tax to services or ending tax exemptions for some businesses.
The House on Sunday passed a bill placing the state's 6 percent sales tax on a wide range of services. A proposal to raise the income tax rate from the current 3.9 percent rate to 4.35 percent faced action in the House; that measure also would need Senate approval.

Granholm has said she won't sign a temporary budget unless she has assurances that higher taxes to pay for education, public health and other programs are part of the deal.

Liz Boyd, a spokeswoman for Granholm, said Sunday that the governor would consider signing the budget extension if the House and Senate also passed the revenue bills.

"If the bills are signed and on their way to the governor's desk, that would be sufficient" to avert a shutdown, Boyd said.
Legislative leaders said they remained optimistic a deal would be reached in time to avert a shutdown, which is scheduled for 12:01 a.m. Monday.

"We're going to get it done today," said House Speaker Andy Dillon, a Democrat.

NPR : Michigan Struggles to Avoid Shutdown

Here's a list of what services will be affected by the state shutdown.
Granholm releases list of services affected by possible shutdown - Michigan News - MLive.com

sgtdmski · 10-01-2007, 03:39 AM

Wow, increase taxes or shutdown the government. Hmmm what a tough decision. Don't you wish it were that simple for the rest of us. Hey boss, I can't pay my bills you either need to pay me more money or I won't work.

Here's a novel idea, instead of raising taxes, giving lawmakers even more money to spend irresponsibly, how about taking out the old hatchet and chop chop, like the rest of us do when our money doesn't buy everything we want.

dmk

indago · 10-01-2007, 09:04 AM

The Governor DID shut down. Many services are closed. There's more here...

MORE (More Crap From China)

pensacola_niceman · 10-01-2007, 09:08 AM

It gets too bloody cold in Michigan anyway. Just move to another state.

Jaxian · 10-01-2007, 09:28 AM

You know, I'm starting to think I should move to another state. Mostly because of this ridiculous government shutdown, instead of the weather, though.

neoconkitty · 10-01-2007, 10:22 AM

grandholm has done nothing for this state. no wonder we are so set back. such a great state and pity that no one can raise us up to prosperiety. M

garysher · 10-01-2007, 11:13 AM

Quote:

Originally Posted by pensacola_niceman

It gets too bloody cold in Michigan anyway. Just move to another state.

Best they can hope is that Canada invades, annexes the state of Michigan, knocks down all those empty car factories and opens sate-run hospitals.

Is a resident of Michigan a Michiganian, Michigander or Michigonian?

mikelew007 · 10-01-2007, 02:31 PM

Well at least it's over, for now.

Quote:

Michigan reaches budget deal averting shutdown

Michigan reaches budget deal averting shutdown
DETROIT (Reuters) - Michigan lawmakers reached a breakthrough compromise on Monday morning that avoided a threatened shutdown of most government offices with a budget deal raising the state income tax and extending the sales tax to some services.

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Gov. Jennifer Granholm, who had ordered a government shutdown in the absence of a deal to plug the state's $1.75 billion budget deficit, said she would sign the measures passed by the divided legislature after a marathon weekend session, along with a 30-day continuation budget.
Under the budget deal, Michigan lawmakers voted to raise the state's income tax rate to 4.35 percent from 3.9 percent and to apply the sales tax to services such as interior design and landscaping.

The Republican-controlled Senate and Democratic-controlled House were expected to take up a proposed $440 million in budget cuts and have agreed to a series of government reforms, Granholm's office said in a statement.

"This budget agreement is the right solution for Michigan," the governor said in the statement. "We prevented massive cuts to public education, health care and public safety while also making extensive government reforms and passing new revenue."

Granholm called 35,000 state employees, who had received temporary layoff notices, back to work early on Monday.

Michigan's unemployment rate was 7.4 percent in August, the highest in the nation. Home foreclosures in Detroit, the state's largest city, were running at five times the national average.

All three Wall Street rating agencies have downgraded Michigan's general obligation bond rating this year, citing the state's deteriorated financial condition.

Michigan reaches budget deal averting shutdown - Yahoo! News

To answer Gary's question, I've been called a Michigander and a Michiganian, but never have I heard of "Michigonian". A resident of Michigan can be referred to as either a Michiganian or a Michigander. Now if you happen to find yourself in the Upper Peninsula of Michigan, the people there usually refer to themselves as Yoopers.

knot_e_lady · 10-01-2007, 02:35 PM

Quote:

Originally Posted by mikelew007

Well at least it's over, for now.

To answer Gary's question, I've been called a Michigander and a Michiganian, but never have I heard of "Michigonian". A resident of Michigan can be referred to as either a Michiganian or a Michigander. Now if you happen to find yourself in the Upper Peninsula of Michigan, the people there usually refer to themselves as Yoopers.

Yes, they are Yoopers, and we are trolls....LOL

Did you see the list of services they plan on charging sales tax on? It's ridiculous!!!

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