State of Michigan Budget

• New Fiscal Year, No Final Budget (Yet): Michigan’s fiscal year started today, but lawmakers haven’t passed a full budget. To avoid a shutdown, they approved a one-week temporary funding plan that runs through Sunday, Oct. 8.

• What’s Next: Leaders expect a final budget deal this week, with a vote and Governor Whitmer’s signature early next week.

• Business Watch: House Bill 4961 could mean $677 million in new business taxes by removing certain federal deductions and credits. This could impact small businesses, job growth, and Michigan’s competitiveness.

What’s Likely in the Final Budget:

• Nearly $2B for road funding
• $800M in spending cuts
• Universal school meals preserved
• Small increase in marijuana wholesale tax

Yesterday, Dakota Baker, Director of the Northern Michigan Chamber Alliance was in Lansing pushing for funding that supports our region’s businesses.

It’s especially important for Manistee County that our voices are represented to ensure local businesses get the support they need!

What the key takeaways of the shutdown? What will be affected?

On Tuesday, September 30, a virtual town hall was held by Senator Elissa Slotkin which reviewed some of the anticipated impacts the federal shutdown will have across several different services. Key takeaways include the following:

• Medicare, Medicaid, and Social Security
• These programs will continue, though some processing delays may occur. Please contact our office if constituents run into issues.
• SNAP/Bridge Card
• Benefits should be secure for 30 days into a shutdown (Oct. 1 – Oct. 30) but could lapse if it extends beyond that.
• Veterans
• VA Medical Centers and outpatient clinics will remain open and operational. Benefits and compensation will continue to be paid. Casework support, certain community-based programs related to veteran homelessness and mental health, and some transportation benefits will be suspended.
• Federal Workers
• Roughly 30,000 workers in Michigan may be affected. Essential employees (military, TSA, ports of entry officers) will continue working but may miss paychecks until backpay is authorized. Federal contractors are not automatically guaranteed backpay.
• Essential vs Non-Essential Workers
• Essential services (law enforcement, air travel, security) will remain, while many administrative services, grants, and permits (EPA, HUD, etc.) will pause or delay.
• National Parks
• Likely to close or operate with very limited staffing.
• Education
• Major federal education funding streams like IDEA and Title I should remain available. States and schools that have already been awarded federal education grants should be able to continue accessing those funds. The Department has indicated that it will continue to disburse student aid such as Pell Grants and Federal Direct Student loans. New grantmaking activities would be halted and reduced personnel may cause processing delays.  
• Federal Grants
• Federal agencies are operating with very little staff, so expect delays in disbursement and response if a grantee runs into any problems with the funds.
• Grantees might consider looking to other sources of funding such as nonprofits and philanthropic resources to support in the absence of timely grants. 

Be advised that this information is subject to change as the shutdown progresses.

What questions do YOU have about the state budget or the federal shutdown?

Please contact Carmen Kott with any questions you may have. The Manistee Area Chamber is more than happy to get you the information, resources, or contact you need. Kott can be reached at carmen@manisteechamber.com or 231-723-2575, ext. 5.

As we navigate the uncertainty that comes with a federal shutdown of undetermined length, you are reminded to stay informed and make your voice heard as a representative of your local community, especially as we enter election season.

You are encouraged to review the Michigan Voter Information Center to confirm if you are registered to vote, what's on the ballot, and more.