February 11, 2009 4:10 PM

Michigan To Shut Down Over Budget Impasse?

(AP)  Michigan's Gov. Jennifer Granholm says state parks and welcome centers could be closed and Detroit casinos and liquor sales could take a hit if she has to shut down the government on Monday.

If no budget deal is reached Thursday solving the state's budget deficit, she says a variety of services such as processing motor vehicle titles and giving out driver's licenses could be affected.

But state programs that protect citizens' health and safety, such as state police patrols, will continue, she said.

"In the event the Legislature forces us into a partial government shutdown, it is our intention to continue the most vital services until a budget resolution is reached," Granholm said in a statement Wednesday.

It was the governor's first public statement on what services may be shut down and which will be kept open if a shutdown occurs. She previously had refused to say what would happen in the event of a shutdown because she said she wants a budget deal that would avoid a shutdown.

Some lawmakers have indicated they have until Sunday to get a budget deal and temporary budget in place so the state can keep operating Monday. But not everyone agrees.

In a letter to state employees, department heads said Granholm hopes to reach a budget resolution by the end of the day Thursday, "as Friday is the last day most of you will be in the office and can be officially notified if state offices are to be closed on Monday."

The said further details would be released Friday, when employees would be told how a partial shutdown would affect them. The state has more than 50,000 employees.

The state Civil Service Commission has a meeting scheduled for Friday morning at which it could change layoff rules, allowing state workers to be laid off without the usual 30-day notice.

The Democratic governor, Democrat-controlled House and Republican-controlled Senate have failed to agree on how to erase a projected $1.75 billion deficit in the state budget for the fiscal year that starts Monday.

A bipartisan House-Senate conference committee convened briefly Wednesday morning to consider an income tax increase, but took a break immediately. Talks were continuing Wednesday, but time was getting short to reach a deal.

Republican senators have passed a bill that would save about $950 million through cuts and spending limits, while Democrats say that's unacceptable because it would harm public safety, health care and education.

The Senate also has passed a bill that would allow a 30-day extension of the current budget structure. The legislation is pending in the Democrat-led House.

A temporary budget extension likely is needed to avoid a shutdown at this point, but the Granholm administration says some sort of revenue increase must be included in a budget plan before the governor would approve a temporary budget.

© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
Add a Comment See all 24 Comments
by s_ruff20000 September 29, 2007 1:14 AM EDT
We must remeember that Granholm really did keep her campaign promises....she had really BLOWING us away!!!!

Jennifer Granholm has done nothing but proven herself a useless failure.

I''m not sure it people really know what a big impact this will be. I am not all for welfare, however some make really need it. How will they feed thier kids. Talk about high crime rates.....
Reply to this comment
by allisonred September 28, 2007 5:22 PM EDT
Yeah, at least Granholm is keeping her campaign promises....she is really BLOWING us away!!!!

I say IMPEACH NOW!!!!!!!!
Reply to this comment
by jmsfrg16 September 28, 2007 1:16 PM EDT
I am a student at Detroit Community High School. I feel that this here shut down of the state is very redundant. This shutdown will effect everyone in all ways. People will be oh so behind on payments, & etc. People that are on child support, AID, & etc will not be able to provide for there household. Comeing from a student please reconsider this plan!!
Reply to this comment
by lan10085441 September 27, 2007 10:33 PM EDT
THIS WOULD HAVE NEVER HAPPENED IF DEVOS WERE ELECTED!!!
Reply to this comment
by lan10085441 September 27, 2007 8:34 PM EDT
During her campaign for re-election, our illustrious governor promised that she would "blow us away."

It looks like she is doing just that. The economy in our state is the worst its been in history; people are losing jobs, houses, health care, and more. In addition to that, the state is now on the verge of ashutdown that is about to impact everything from recreation to law enforcement.

As a governor, Jennifer Granholm has done nothing but proven herself a useless failure. At this point, the best thing that "Ms." Granholm can do is to step down and turn over the governorship to more competent hands!

John Lanzon
Southfield
Reply to this comment
by yoopermom September 27, 2007 6:05 PM EDT
HOW ABOUT CUTTING OFF THE HUGE WELFARE SYSTEM IN THE STATE? HERE ARE 12 DIFFERENT HOUSING PROGRAMS!! NO WONDER THE STATE IS GOING BROKE!!

But NOOO, these programs are SACRED. We have to keep our welfare population happy!!
--------------------------------------------------------------------------------
Posted by RW001

Many of the families that receive these services are not living off welfare. They are among the working poor. I see many families that are working their butts off and are lucky to make $15,000 a year. That is only $1250 a month BEFORE taxes add to that say $600/month in rent not including utilities and you can see that these types of programs are needed for people to survive. You want to start pointing fingers at why this state is going broke, you need to start a little higher up than the housing programs.
Reply to this comment
by rw001 September 27, 2007 4:25 PM EDT
HOW ABOUT CUTTING OFF THE HUGE WELFARE SYSTEM IN THE STATE? HERE ARE 12 DIFFERENT HOUSING PROGRAMS!! NO WONDER THE STATE IS GOING BROKE!!

But NOOO, these programs are SACRED. We have to keep our welfare population happy!!


MODERATE REHABILITATION (MRH)

Generally, residents in these developments must be low income persons and families who meet Income Limits set by HUD and the Tenant Selection Criteria. HUD provides a subsidy to the development which pays a portion of the residents'' rent. MSHDA usually plays a very minor roll at these developments. The rent that residents pay is based upon their adjusted family income, minus an allowance for utilities. All residents in these units must pay a minimum rent of $25.00 per month from their own money


Reply to this comment
by rw001 September 27, 2007 4:23 PM EDT
NEIGHBORHOOD PRESERVATION PROGRAM (NPP)

At least 20% of the housing units in these developments must be rented to low income persons and families who meet Income Limits set by HUD and the Tenant Selection Criteria. The remaining 80% of units may or may not be restricted based on resident income, depending on when the development was financed. This program is limited to small developments of 4 to 30 units. A rent subsidy is offered for these units. Rents for the units in these developments tend to be lower than those of other rental housing units because of MSHDA financing.

FAMILIES IN TRANSITION (FTR)

These developments are restricted to low income, homeless, single mothers who meet the Income Limits and the Tenant Selection Criteria, and their children. In addition, day care and other support services may be available subject to available funds. Rents are subsidized and very low . Actual rents at each FTR development are affected by community grants available to that particular development. An additional fee may be charged for services not related to housing.

Reply to this comment
by rw001 September 27, 2007 4:22 PM EDT
TAXABLE BOND (TXB)

All residents in these developments must be low income persons and families who meet Income Limits determined by HUD and the Tenant Selection Criteria. No rent subsidy is offered for these units. Rents for units in these developments are restricted by rent limits established by the Federal government.

TEAM (TM)

At least 40% of the housing units in these developments must be rented to low income persons and families who meet Income Limits set by HUD and the Tenant Selection Criteria. The remaining units may be rented by families meeting the Tenant Selection Criteria, regardless of their income. The owner may, at its option, choose to restrict all or any portion or these market rate units to low income persons and families. No rent subsidy is offered for these units. Rents for the units in these developments tend to be lower than other rental housing units because of MSHDA financing.

Reply to this comment
by rw001 September 27, 2007 4:22 PM EDT
70/30(7.3)

At least 30% of the housing units in these developments must be rented to low income persons and families who meet Income Limits set by HUD and the Tenant Selection Criteria. In addition, some units must be rented to persons and families who meet moderate income limits set by MSHDA and the Tenant Selection Criteria. Others may be rented by families meeting the Tenant Selection Criteria, regardless of their income. No rent subsidy is offered for these units. Rents for all units are restricted by MSHDA. Rents for the units in these developments tend to be lower than other rental housing units because of MSHDA financing.

ONE PERCENT(1%)

All residents in these developments must be low income persons and families who meet Income Limits determined by HUD and the Tenant Selection Criteria. No rent subsidy is offered for these units. Rents for units in these developments are restricted by rent limits established by the Federal government.

Reply to this comment
See all 24 Comments
.
Scroll Left
Scroll Right More »
CBS News on Facebook