The State of Michigan will be shut down due to a budget crisis at midnight tonight unless lawmakers can work it out. [State of Michigan]
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Other than the fact that politicians can't keep the government's affairs in order, it seems like very poor logistical planning if a government does not have contingency for these situations.
The State of Michigan likely has an emergency savings fund. If they cannot agree on how to continue funding operations, there is no reason why they cannot dip into emergency reserves until their legislators figure out how to agree on a budget.
@Darren666: Michigan doesn't even have a REGULAR savings fund, much less an emergency one. They are already operating deep in the hole. You underestimate the pathetic nature of how this state is run.
It appears they have already passed a temporary extension of the current "budget." As a Michigan resident... I'm not suprised by any of it.
@Kloud: No, citizens don't get to vote on income tax increases in Michigan--only on property tax increases. As a Michigan resident, I was outraged at our legislature's inability to pass a budget without having to shutdown (although the shutdown only lasted 4 hours). They have finally agreed on a budget, but not without making Michigan look even worse than it already does as a result of our failed manufacturing industry, horrible unemployment rate and failing housing market.
Gee, I wonder why everyone is leaving the state?
@Darren666: Michigan's "rainy day fund" (that's what the emergency savings fund is called here) was depleted years ago, due to what the governor calls "structural problems."
Basically, the state is only allowed to add to the fund when tax revenue exceeds state expenditures, and that hasn't happened in years, because the previous administration (Republican governor + Republican legislature) cut taxes more than they cut expenditures, and the current administration (Democratic governor + split legislature) haven't been able to agree on raising taxes or cutting services). The rainy day fund got nickled-and-dimed to death while everyone bickered.
The Democrats basically argue that the previous administration cut taxes too far. (Indeed, the new "higher income taxes" are still lower than what they were before the last round of cuts. It's the new service taxes that are freaking people out) The Republicans just want to cut services (but aren't that clear on what they want to cut, because not many of them want to go on record as advocating things like reducing Medicaid). The Republicans also wasted a lot of time last year (an election year) by trying to lower taxes more.
I think some of the more extreme Republicans wanted to "starve the government" by underfunding it, but it kinda backfired and made everybody look like idiots. That's less of a problem for the governor (she's term-limited), but legislators on both sides of the aisle are going to be on defensive next election.
I'm going to that Republicans started this mess, but both sides handled it badly.








Funeral home directors can't apply for subsidies to bury indigent deceased? Michigan is going to have hobo bodies rolling through the streets!