LANSING – Michigan government did shut down at midnight on Monday, but the shutdown was short lived as the Legislature completed action on a series of bills that created a financial package for the 2007-08 fiscal year as well as established a 30-day continuation budget.

The shutdown technically did not end until Gov. Jennifer Granholm signed legislation allowing for a continuation budget. But effectively it ended at about 4:18 a.m., Monday, when the Senate finally won immediate effect on HB 5198 .

At 4:20 a.m., Granholm issued a statement announcing the shutdown was over and calling on all state workers to report for work when business began on Monday.

Ironically, the immediate effect vote on that bill became the most dramatic even of the last day of the marathon sessions, eclipsing the two votes Lt. Governor John Cherry had to cast to win passage of the tax bills.

With that vote, the agonizing process of the last month to reach an agreement on at least the revenue portion of the 2007-08 budget also came to an end, following unprecedented overnight session days. With the exception of Yom Kippur on September 22, at least one house of the Legislature has met for 19 consecutive days.

But while attention has focused on winning the agreement on a tax increase, reforms and a continuation budget, legislators now must turn quick attention on enacting the appropriations bills for the 2007-08 fiscal year.

House Speaker Andy Dillon (D-Redford Twp.) took aim at the process that led to the final budget agreement. “I’m disappointed in the process,” he said. “Basically this entire package was delivered by Democrats in negotiation with the Senate.

“Being new to government, I’m very frustrated with the process.”

Dillon said the process showed a need to look again at term limits. “When you are only here for six years, you’re always looking to the next job,” he said. “You’re beholden to the party and not to making good policy.”

House Minority Leader Craig DeRoche (R-Novi) said his party’s actions were policy-based. “We simply stood on principle to get the reforms,” he said.

Senate Majority Leader Mike Bishop (R-Rochester) also expressed disappointment because the process ended up with a major tax increase in the income tax along with a series of new taxes on a variety of business services.

But he said Republicans had also won with enacting a series of reforms that should help recast the size and nature of government and help lead to an improved state.

Everyone, Bishop said, now “has to do whatever we can to make this state the best place to do business and raise a family.”

And he also said Republicans won by forcing Granholm and Democrats to agree to more than $400 million in budget cuts, less than what Republicans wanted but more than what Democrats were initially willing to give.

Budget Director Bob Emerson, however, said the final agreement showed “a major step forward for the Legislature. It was not pretty along the way, but I think it is a tremendous step forward in the maturation of the House and Senate.”

Agreement came finally when Granholm, Bishop and Dillon began to confront the real consequences of a government shutdown and began to put aside their personal differences to reach agreement.

Because the budget package was not completed by midnight Monday, the government did officially shut down most operations not related to the public’s health and safety. However, because the Legislature did complete work on the package in the pre-dawn hours, state government went back into operation./

At midnight, the Michigan.gov website posted a notice that because the comprehensive budget agreement had not been reached the partial shutdown of state government had begun. State workers were not expected to report for work if they had been told on Friday that they were laid off.

The site also said state workers should continue to monitor the website and local media to see if the shutdown had been rescinded.

A statement was also issued by Granholm’s office that while the shutdown was now in effect she was still hopeful that the measures would be to her desk before the normal start of business.

Earlier Sunday, Granholm spokesperson Liz Boyd said the governor would sign a 30-day continuation budget only after the agreement has been “signed, sealed and delivered.” That, she said, meant that the votes in the Senate and House must have happened, and the bills enrolled.

Although the agreement had been reached Saturday, the talks continued on details throughout Sunday as both chambers scrambled for votes.

When the shutdown took effect, however, it did not appear that any state workers who were on duty at midnight – specifically House and Senate staff members – left the job even though they were not being paid.

The final significant part of the proposal that ended the shutdown, Senate approval of HB 5198, occurred at 4:30 a.m. Monday. The bill extended the sales tax on a number of services (see related story). The Senate had more difficulty passing that measure than it had the income tax increase, HB 5194 , nearly two hours earlier.

The Senate was preparing to present the continuation budget bills, SB 772 and SB 773 , to Granholm after that tax bill.

While the impact of the short lived shutdown might be hard to measure, Emerson said in one area the shutdown was felt before the new fiscal year began.

State Parks had to cancel campaign reservations for anyone who had one for Sunday evening, and had to have anyone staying the parks leave before 9 p.m. This week actually marks one of the more popular times for the parks as October 1 is the start of bow-hunting season for deer, and many hunters stay in the parks.

Emerson said that state departments all had phone trees established to contact workers to return once the package was completed.

And Boyd said workers should treat the early hours on Monday much as they would a snow emergency, by checking local television stations to know if they were coming into work or not.

Dick Blouse, president of the Detroit Regional Chamber, praised the Legislature for averting a large-scale shutdown of government but complained that too much of the resolution was put on the backs of individuals and businesses.

This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com

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