State of Michigan Facing Another Government Shutdown

Meredith Jessup | September 28, 2009 11:46 AM

For the second time in only three years, the "leadership" of Governor Jennifer Granholm is once again threatening to shut down the state's government.

The state with the nation's highest unemployment rate has run-up a nearly

$3 billion budget shortfall. The state government is depending on funds from the federal stimulus to fill a good portion of the gap. It's so nice that those federal tax dollars went to covering politicians' spending shortfalls rather than, say, creating "shovel-ready" jobs!

But policymakers in Lansing will have to agree on spending cuts (gasp! what a novel idea!) or tax increases (perfect for an already struggling state economy) in order to reach an agreement and keep the state's government agencies from shutting down:

Republicans want Democratic lawmakers to propose and pass tax increases, giving the GOP possible fodder to use against Democrats in next year's elections. Democrats hope to get a leg up by painting GOP lawmakers as willing to hurt children rather than reinstate estate taxes on the right.