The Michigan Legislature must pass a balanced state budget by October 1, or the state government will enter a shutdown. As noted in our recent letter to the legislature, the Northern Michigan Chamber Alliance supports the passage of a balanced budget that prioritizes our region before a government shutdown occurs. This has happened under previous legislatures, but those shutdowns have only ever lasted for a few hours. Negotiations are ongoing in Lansing to try to reach a deal that will avoid such a shutdown. In the meantime, here are some things to pay attention to in preparation. In the event of a shutdown, the Governor’s office will have control over which state agencies and services will remain open.
We will update this as we receive information in the coming days on which agencies will stop providing services if a shutdown seems likely. This is an incomplete list, but should help give some guidance on how to prepare for gaps in state function.
LARA:
IMPORTANT: If the state government shuts down, the Liquor Control Commission won’t be accepting retail orders for spirits. This would include special liquor licensing permits. If your business needs to place an order or get an approval for a license in the near future, it would be best to ensure that the order is placed BEFORE the close of business on Monday, September 29.
State Fire Inspections, Health Inspections or other permits would also likely be put on hold until the Government reopens.
SOS:
The branch offices and online services provided by the Secretary of State would likely be closed. Vehicle registrations and license or vehicle renewals should be completed before October 1.
MDOT:
In previous shutdowns, road and building construction projects have been halted, although some key projects have remained operational. It is likely that road construction projects would halt across the state. Certain MDOT projects could be halted, such as the operation of the drawbridge in downtown Charlevoix. In past occurrences, the bridge has been left up until the shutdown has ended, but the Governor could decide to keep it operating.
MiLEAP:
Childcare licensing would pause until the shutdown ends.
Treasury:
Unemployment registration may be impacted if the government shuts down.
Education:
It is possible that state payments to schools, community colleges, and universities would stop until a budget is enacted.
MDHHS:
Medicaid reimbursements and other state-funded health and social service payments may stop or be delayed, although services have remained open in past shutdowns.
DNR:
In the past, facility closures operated by the DNR have been a direct result of a government shutdown. Closure, or limited hours of state parks and historic sites is possible.
MSP:
Historically, the Michigan State Police continues to operate if the government shuts down. Some non-emergency services may not be available, but MSP posts have remained open, and State Troopers have still responded to 9-1-1 calls. Prisons have also remained in operation in previous shutdowns.
EGLE:
Permitting would likely be put on hold until the department returns to work at the conclusion of a shutdown. Wastewater permits, soil permits, etc., would be held up while the department is closed.