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Encyclopedia > 2007 Michigan State Government Shutdown

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Introduction

The 2007 Michigan budget crisis occurred when the Michigan Senate and House could not come to an agreement on the new budget plan. The House was controlled by the Democrats, who, like the governor, Jennifer Granholm, wanted to raise taxes to solve the budget deficit. The Republican-controlled Senate wanted to cut spending to reduce the deficit. The state faced a government shutdown that began on October 1, but reached a final agreement within several hours, ending the shutdown. Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... This article is about the U.S. State. ... Look up budget in Wiktionary, the free dictionary. ... A crisis (plural: crises) is a turning point or decisive moment in events. ... Billie S. Farnum Senate Office Building, Downtown Lansing The Michigan Senate is the upper body of the Michigan Legislature. ... Type Lower House Speaker of the House Andy Dillon, Democratic since November 7, 2006 Minority Leader Craig DeRoche, Republican since November 7, 2006 Members 110 Political groups Democratic Party Republican Party Meeting place Michigan State Capitol, Lansing, Michigan Web site Michigan House of Representatives Cora B. Anderson House of Representatives... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas  Politics Portal      Further information: Politics of the United States#Organization of American political parties The Democratic... For other uses, see Governor (disambiguation). ... Jennifer Mulhern Granholm (born February 5, 1959) is a Canadian-born American politician and the current Governor of the U.S. state of Michigan. ... A budget deficit occurs when an entity (often a government) spends more money than it takes in. ... The Republican Party is one of two major contemporary political parties in the United States of America, along with the Democratic Party. ...


Agreement Reached

On 1 October, 2007, Michigan's government website, michigan.gov, stated that an agreement had been reached and all temporarily laid-off workers were to return to posts the following day:


"AGREEMENT IS REACHED


State legislators have reached a comprehensive budget agreement to end a government shutdown. State government will be open for business on Monday, October 1 and all state employees should report for your next scheduled shift.


The budget agreement includes reforms and new revenues that will fund the vital work of state government and help Michigan avoid the types of structural budget issues that have contributed to recent financial problems.


The notice of temporary layoff you received on Friday, September 28, 2007 is no longer in effect. Again, all state employees are expected to report for work at the beginning of your regularly scheduled shift on Monday, October 1, 2007."


However, this is only an agreement and a official budget bill still needs to be passed. Under the current bill the Michigan State government plans to cut $300 million dollars in spending. As well as to increase income tax to %4.4 and the addition of the %6 sales tax to a broader range of goods and services. The agreement is only good for four weeks and a budget bill needs to be passed by then, otherwise the Michigan state government will be facing another shutdown in November.



 
 

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