Michigan Budget Deadline Looms, Uncertainty Rises Before Fiscal Year End

LANSING, Mich. — With just hours left before the end of the fiscal year on Sept. 30, Governor Gretchen Whitmer and legislative leaders acknowledged they would not meet the midnight deadline, stating they plan to finalize the 2026 budget ‘this week.’

In a statement issued late on Sept. 30, Whitmer, House Speaker Matt Hall, R-Richland Township, and Senate Majority Leader Winnie Brinks, D-Grand Rapids, assured the public that government operations would continue as usual but did not clarify how they would proceed without a budget.

Michigan’s Legislature passed a 30-day continuation budget in 2009 to meet constitutional spending requirements. Article 9, Section 17 of the Michigan Constitution stipulates that ‘no money shall be paid out of the state treasury except in pursuance of appropriations made by law.’ However, the leaders did not mention this option in their announcement.

State Rep. Alabas Farhat, D-Dearborn, a member of the House Appropriations Committee, offered insights at approximately 6 p.m., noting that executive powers could allow the state to continue functioning as details are finalized.

“Tomorrow, state government will continue and work will go on in the Legislature to finalize a balanced, bipartisan state budget this week,” Whitmer said in the joint statement. “I’m grateful to legislators on both sides of the aisle for their work…”

House Majority Floor Leader Bryan Posthumus, R-Rockford, explained that while the state can incur expenses without appropriating funds, it cannot pay bills until the budget is settled. He reassured state employees that they would continue working and receiving pay even if the budget were not completed by the deadline.

Meanwhile, protests erupted at the Capitol over the marijuana tax legislation included in the budget deal, which has drawn significant opposition. The House approved the marijuana tax in bipartisan votes on Sept. 25, but some lawmakers expressed skepticism about its implications.

Senator Jon Bumstead, R-North Muskegon, voiced doubt about reaching a budget agreement, stating, “probably not,” when asked about his vote on the tax bill. He and Senator Jeff Irwin, D-Ann Arbor, raised concerns about the tax burden following the 2018 legalization of recreational marijuana.

As budgetary discussions continued, Governor Whitmer joined House Democrats for a caucus meeting. She remained optimistic but acknowledged that negotiations around the final details were still in progress.

The last government shutdown occurred in 2009, lasting only hours before a temporary budget was signed into law by then-Governor Jennifer Granholm. Current conditions suggest that a partial shutdown might coincide with a federal government shutdown on Oct. 1.

In anticipation of disruptions, officials are aware that state parks and Secretary of State’s Office branches may face closures, alongside potential delays in road construction projects. The Michigan Supreme Court has already issued orders to extend filing deadlines in case of a shutdown.

Amid the turmoil, Detroit Mayor Mike Duggan, an independent candidate for governor, expressed his concern about Lansing’s stalemate, reinforcing his belief that a new form of governance is necessary to restore functionality. “If you think dysfunction is going to end with a vote tonight, you’re watching a different state than I am,” he remarked.