Funding for Michigan's schools, libraries, prison system, and health programs hangs in the balance as lawmakers have given themselves 30 more days to pass a balanced state budget. Failing to meet their deadline of October 1, the state's elected officials pushed their time limit back to Saturday, October 31.

Lawmakers' inability to pass a finalized budget led to a government shutdown for nearly two hours early October 1, so a continuation budget, which enables state offices to function as normal, was passed to end the shutdown of state offices.

The state is facing a budget shortfall of roughly $3 million, coupled with the nation's highest unemployment rate. Conflicting political philosophies and priorities were the cause for the delay, State Representative Gary McDowell of Rudyard told The St. Ignace News. Unlike the federal government, which can operate in a deficit, the state budget must be balanced for the state to function. Differing opinions on how to reach that balance resulted in the deadline being pushed back.

Philosophical differences about taxation to pay for programs were a sticking point, lawmakers agreed.

"There was a basic, honest disagreement on whether taxes should be increased or not," said Norm Saari, chief of staff for Republican Senator Jason Allen, of the budget delay. "We don't think raising taxes is the way to increase prosperity."

The Senate passed 14 bills that did not include tax increases.

Large cuts were proposed to programs in many of the bills that were passed. A $40 million reduction in the non-Medicaid community mental health program was made to balance the budget. Rep. McDowell, who chairs the Department of Community Health appropriations subcommittee, said the reduction will impact the mentally ill and how they will receive medication.

"These cuts aren't just abstract numbers on paper, they impact the most at-risk members of society," he said.

State aid to libraries was proposed to be reduced by $4 million, or 40% of its current level.

The passed corrections budget included language about eight prison closures. Camp Cusino, Camp Ottawa, Hiawatha Correctional Facility in the Eastern Upper Peninsula, and Camp Kitwen were closed earlier in the year. Camp Lehman, Camp White Lake, Muskegon Correctional Facility, and Standish Maximum Correctional Facility are still slated for closure under the proposed budget. Shuttering all eight prisons will result in a savings of $120 million for the state.

An 11% cut in state revenue sharing to cities, villages, townships, and counties was included in the proposed general budget bill. Revenue sharing funds are used to supplement the general fund budgfor et, Mackinac County Treasurer Nora Massey said. The county receives about $220,000 from state revenue sharing, she said, and could lose about $24,000 from the proposal.

"If it's the only cut we receive, we could handle that," Ms. Massey said. "It could have been a lot worse, that's for sure."

About $6 million, or 71%, could be cut from the state's arts budget. This is particularly difficult, said John Bracey, executive director of the Michigan Council for the Arts and Cultural Affairs, as corporate and private donations have tapered off over the years. Mr. Bracey hopes to defend the re-granting program, in which the state is divided into 19 districts and an organization in each district is given a grant. The organization then gives some of the grant money to smaller local organizations to benefit arts programs.

The defeated school aid budget that did not reach the governor's desk proposed a reduction of $218 per student in public schools.

The measures passed by the Senate must be considered and ultimately signed by the governor.