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| Mich. stares down 2nd govt. shutdown in 3 years |
| 2009-09-28 |
| LAINGSBURG, Mich. (AP) - Economically beleaguered Michigan faces a possible government shutdown - shuttering highway rest areas, state parks, construction projects and the state lottery - if lawmakers fail to reach a budget deal in the next few days. The state with the nation's highest unemployment rate has a nearly $3 billion shortfall. Federal recovery act money will fill more than half the gap, but the spending cuts or tax increases needed to fill the rest have caused bitter infighting at the state Capitol. Michigan is one of just two states whose budget year starts Oct. 1. The other, Alabama, already has a spending plan in place, according to the National Conference of State Legislatures. If lawmakers in Lansing don't make progress soon, Michigan could join the eight other states that failed to meet budget deadlines - but did not shut down - this year. That's something neither Democratic Gov. Jennifer Granholm nor lawmakers want to do. They're haunted by memories of the fallout from an hours-long government shutdown in 2007 and want to avoid the resulting voter disgust and national derision. One state lawmaker, Republican Rep. Ken Horn, introduced legislation that would give residents a grace period to renew licenses, apply for benefits and let businesses operate under existing permits if there's a government shutdown. The legislation hasn't had a hearing. About the only thing Republicans and Democrats have agreed on is tapping up to $1.5 billion in federal recovery dollars to fill part of the $2.8 billion budget gap. A continuation budget could be put in place to avoid a shutdown, but one approved Friday by Senate Republicans is opposed by Democrats, and it can't be voted on by the Democratic-led House until one day before the Oct. 1 deadline under legislative rules. With the Senate in Republican hands and Democrats holding a House majority, and the Democratic governor and House speaker disagreeing, a compromise has been slow in coming. Legislative leaders did report some progress Friday, but hurdles remain. Republicans want Democratic lawmakers to propose and pass tax increases, giving the GOP possible fodder to use against Democrats in next year's elections. Democrats hope to get a leg up by painting GOP lawmakers as willing to hurt children rather than reinstate estate taxes on the rich. |
| Posted by:Steve White |
| #4 Yeah, hard to see how they can lose money on the lottery. On the other hand, the five separate lottery games are a) a government run enterprise, and b) run by the State of Michigan - the same jokers that tried to fix the budget shortfall by placing a surcharge on the Michigan Business tax. That's right, they are now taxing taxes. We are soooo screwed. |
| Posted by: SteveS 2009-09-28 22:01 |
| #3 The state lottery? How the hell do they run it? Our state lottery pays completely for itself and its expenses, AND turns over millions to the state for education (that's what the proceeds are marked for by the original legislation). A quick peek at our state lottery's website shows that they've contributed over $4 billion to state education (that's K-12, not college, I believe) since they started. So is Michigan so stupid that they don't even know how to run a lottery? Then they do need to shut the state gummint down - permanently. |
| Posted by: Barbara Skolaut 2009-09-28 16:02 |
| #2 Economically beleaguered Michigan faces a possible government shutdown - shuttering highway rest areas, state parks, construction projects and the state lottery - if lawmakers fail to reach a budget deal in the next few days. I call bullshit: the state lottery is a money maker. They'll keep those going and let all the other stuff shut down. |
| Posted by: Ptah 2009-09-28 12:42 |
| #1 Here is a more accurate picture of what the Michigan GOP proposes. |
| Posted by: crosspatch 2009-09-28 02:19 |