Note — This story was updated 09/30 at 11 p.m. with more details on a potential shutdown.
LANSING — The Michigan government partly shut down Tuesday night, days after lawmakers promised the public that they had reached a spending agreement.
As of 11 p.m. Tuesday, no details were available on how tens of billions of dollars would be distributed among Michigan agencies.
Despite the new fiscal year starting at midnight, Whitmer told state workers Tuesday that government operations would “continue as normal” even if a budget deal isn’t reached.
The announcement essentially called on state agencies to act as if a shutdown hasn’t happened in the next few days, even if the state is prohibited from new spending starting Oct. 1.
“We’ve agreed to some financial metrics, and they’re just going through the motions trying to get it done right now, said Rep. Cam Cavitt, (R) District 106, Cheboygan, Tuesday night. “I think you’re going to see some more activity, maybe first in the morning. For sure tomorrow, a lot is going to get done. So rest assured — everybody down here in Lansing is working hard to try and get this budget. Nobody wants to shutdown”
Whitmer did not provide a legal justification for the move, and it remains to be seen whether government services will be disrupted.
One of the few policies that lawmakers have made public is a long-term road funding plan.
“We all are on the same page with additional funding, especially for local roads,” said Rep. Donni Steele, (R) District 54, Orion Twp.
The proposal would bring in $1.5 billion annually for road maintenance. Legislators plan to push off a cut to the state corporate income tax and institute a new 24% wholesale tax on marijuana products to cover most of that funding.
Lawmakers have received pushback on that proposal from the state marijuana industry, including hundreds who rallied at the Capitol on Tuesday.
David Harris with 31 Cannabis says that the marijuana market already pays its fair share to the state and the move would result in higher prices for consumers.
“People are going to go back to the black market,” he said. “People can go back to the streets for stuff, because he prices are just going to be outrageous in the stores, and the quality is going to fail.”
The new tax would be established in addition to the 10% excise tax and 6% sales tax that already bring in around $350 million a year.
“It’s just very clear that the people are making the decisions don’t really care if this industry makes it or not,” Harris said. “If we’re going to be here, they’re going to get the money out of us. And if we can’t do it, then it’s gonna go and they don’t care.”