Michigan passes budget continuation as negotiations continue

(The Center Square) – Just hours after the Michigan government entered a shutdown at midnight, the legislature and Gov. Gretchen Whitmer passed a continuation budget.

That means the state government will remain open – operating for the next week with $1.56 billion.

Whitmer applauded the stopgap’s passage, adding that a final budget for fiscal year 2025-2026 will be coming soon.

“The Michigan state government will stay open,” Whitmer said. “We’re on the verge of making huge progress to fix our state and local roads, feed our kids at school, cut taxes for seniors and working families, protect access to affordable health care, and keep Michiganders safe in their communities. In the meantime, state government will continue providing uninterrupted services and state employees will work today, getting things done for their fellow Michiganders.”

The continuation was first introduced by House Republicans in February, as they foresaw the coming potential fiscal stalemate of Michigan’s divided government. It passed the Republican-majority House in March, but the Democrat-majority Senate refused to take it up until Tuesday, when the budget deadline was quickly approaching.

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Both Republicans and Democrats applauded this move to prevent a government shutdown.

“The Legislature has approved our House Republican measure to prevent a shutdown as a budget deal is finalized,” House Republicans said in a statement early this morning. “This failsafe measure ensures essential state services remain operational. Michigan taxpayers paid for a functioning government and the state must deliver one.”

House Democrats echoed that sentiment, adding that they are working to make sure their priorities are included in the final budget.

“Tonight we took action to ensure Michigan keeps running for the people of our state,” they said in a statement early this morning. “There’s a lot more work to be done, but House Dems won’t quit showing up for you, for families, for kids, for workers, for Michiganders.”

The continuation will fund the government just until Oct. 8, which Whitmer’s office said should be enough time for her administration and the legislature to finalize the budget.

“The continuation budget allows the state to continue spending in the interim before the governor signs the full fiscal year budget into law,” Whitmer’s office said. “After the final pages of the full budget are typed, the legislature will vote.”

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Oct. 1 was the second deadline the legislature missed.

July 1 was the legally mandated statutory deadline for the finalization of the entire budget for the 2025-2026 fiscal year, including the separate School Aid budget.

That deadline came and went, after Republicans and Democrats proposed and voted on vastly different education budget plans.

There was some hope that Michigan would avoid a shutdown altogether after Whitmer and lawmakers declared last week they had reached a compromise on state budget negotiations. Yet, they weren’t able to successfully finalize it in time for the midnight deadline on Oct. 1.

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