michigan budget

Michigan's horseracing industry, already reeling from decreases in revenue and the possible closure of Great Lakes Downs after this season, is facing an Oct. 1 shutdown should the state legislature fail to approve a budget.

Michigan lawmakers were in session Sept. 27, attempting to hammer out a temporary budget deal that could hike taxes. The fiscal year begins Oct. 1, which means a budget must be in place by then to avoid a shutdown of state government.

Horse racing, operated under the auspices of the Office of Michigan Racing Commissioner, would shut down as well. Liana Bennett, a spokeswoman for the racing commissioner's office, said live Thoroughbred and harness racing, as well as full-card simulcasts, would be suspended at all tracks in the state.

Great Lakes Downs, the state's lone Thoroughbred track, is scheduled to host the lucrative Michigan Sires Stakes for Michigan-bred horses Oct. 6. The racing commissioner's office on Oct. 8 has scheduled a hearing on racing applications for 2008; there is interest from individuals to operate Great Lakes Downs or build a track in the Detroit metropolitan area.

"If we're not here, we'll have to reschedule the hearing," Bennett said of the possible government shutdown. "We're sort of taking a worst-case scenario."

According to the Associated Press, Michigan is facing a $1.75-billion budget shortfall. Gov. Jennifer Granholm and the state legislature have failed to reach agreement on whether to raise taxes.

There has been talk this year in Michigan regarding slot machines or related gaming devices at racetracks in the state, but whether expanded gambling is a budget option remains to be seen
DETROIT (Reuters) - Michigan Governor Jennifer Granholm ordered government offices to shut on Monday if the state's divided legislature cannot come to terms on a budget that would include higher taxes.

Granholm, a Democrat, said she was "hopeful" a compromise could be reached between state Republicans who control the Senate and the Democratic-controlled House that would avoid a costly state government shutdown.

"Productive negotiations are now underway that could head off this government shutdown while there is still time. We have made significant progress in the last 48 hours," Granholm said Thursday evening in a televised speech from her office.

The government shutdown would deal another blow to a state economy already hurt by deep job losses in the auto sector and a slumping property market.

It would also come within a week of another economic disruption caused by a United Auto Workers union strike against General Motors Corp. that highlighted the uncertainty facing the state.

Granholm said she would not sign a budget that relied on spending cuts alone to close the estimated $1.75 billion budget deficit facing the economically distressed state.

In response, Senate Republicans urged Granholm and the Democratic House to pass a 30-day continuation budget that would allow time for the negotiations to continue into the new fiscal year that begins on Monday.

Granholm indicated she opposed any temporary spending measure that would take the pressure off lawmakers and wanted a full $41 billion budget for the state.