Michigan Gov. Gretchen Whitmer criticized what she called "chaotic national tariff policies" and a political standoff on the current state budget as a combination of uncertainty costing the state "time, money, opportunities and jobs." 

Whitmer gave those remarks in a speech Tuesday in Lansing with state lawmakers and her cabinet among those in attendance. There was high interest ahead of time in what the governor would say – she is term-limited and unable to run again for that office, but has not stated her intentions for after her term runs out. 

It's also the first time in years that Michigan faces the potential of a state government shutdown over the lack of an approved budget. There were brief shutdowns that lasted less than a day in 2007 and 2009; and contingency plans were made public during 2019 as the state neared a shutdown scenario until budget bills were signed. 

While she emphasized the impact that import tariffs have on the state's economy, Whitmer's most pointed remarks were on the state budget process, one that has stalled out with only two weeks to go before the next fiscal year begins Oct. 1. 

Michigan's economy gripped by "uncertainty" over tariffs, Whitmer says

The frequent and unpredictable changes in national import tariff policies, rates and effective dates directly hit the middle-class jobs that Michigan residents rely on, the governor said. 

Michigan's economy relies heavily on autos and agriculture, with one in five jobs related to the automotive industry and a supply chain that is closely tied to businesses located in Canada and Mexico. Major manufacturers such as the automakers make investments and plans that go five to 10 years out, she added. 

"Automakers are struggling to navigate the new tariff regime," she said. "Manufacturers invest and plan 5 to 10 years out. Now, they can't. Uncertainty is crippling them." 

And while Whitmer gave examples of newly announced investments, such as new fighter jets for Selfridge Air National Guard Base and 450 jobs coming to Auburn Hills, the overall picture was less encouraging. She cited examples of inflation affecting everyday expenses for families, combined with stagnating wages. 

"Everything costs more ... clothes, school supplies, fresh fruits and veggies," she said. 

Whitmer updates on the state of Michigan's budget 

The governor's most pointed remarks were to the state legislature, which has missed key deadlines amid a stalemate in the annual budget process. The state budget runs out Sept. 30. The delays have already frustrated public school leaders who had to start the academic year with no word about state funding. 

"My job is to introduce and sign a budget. It's on the legislature to debate and pass a budget, and they need to get it done by the end of the fiscal year," Whitmer said. 

She listed off the dates during which she presented her recommendations and when the Democrat-controlled Michigan Senate passed its budget. 

The Republican-controlled Michigan House introduced its budget 21 days ago, which significantly differed from the Senate budget.

"And let me be clear ... that's not one I would ever sign," Whitmer said of the House version. 

Whitmer said her budget team will be involved in the conversations and negotiations, but "it takes 56 votes in the House, 20 votes in the Senate and one governor's signature for a bill to become law." 

She also emphasized her willingness to work in a bipartisan manner, saying that, during her years as governor, she had signed four budgets with a legislature led by Republicans and two with the legislature led by Democrats. 

"My team and I are ready to go. We can still do this on time, but the clock is ticking," she said.