Michigan budget countdown continues as government shutdown looms

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Michigan budget countdown

One thing they will do is take $1.1 billion in sales tax money now collected at the pump and redirect it to the roads. There is serious talk of creating a new road tax on THC hemp-infused beverages and permitting their sale in bars, liquor stores, and grocery stores.

As former ball player Yogi Berra used to say, "It's not over till it's over," but under the dome this week, there is more positive energy that it will be over with a new budget and a road fix plan.

Big picture view:

Just a couple of days ago, the House GOP speaker made this flat-out prediction on fixing roads.

"We're going to get a local road program done with the governor. That's what we're going to do," said Michigan House Speaker Matt Hall.

One thing they will do is take $1.1 billion in sales tax money now collected at the pump and redirect it to the roads.

There is serious talk of creating a new road tax on THC hemp-infused beverages and permitting their sale in bars, liquor stores, and grocery stores.

The road building industry wanted $3 billion in new road revenue, but the word is that will be sliced down to between $1.2 and $2 billion.

Some road workers may still leave the state, but the industry lobbyist, with mixed emotions, says it's better than nothing. Lance Binoniemi of the Michigan Infrastructure & Transportation Association had this to say.

"We will see probably a couple thousand jobs lost," said Binoniemi. "There is no question about that. We are supportive of this very large investment, but we were hopeful it would have been more."

Dig deeper:

One major sticking point is how much lawmakers should spend on pet projects back home. The House Republicans want a cap of $100 million, while the Senate Democrats want more.

One of the governor's major job creation funds is on the chopping block. The so-called SOAR fund will likely be killed, with that money going to roads.

Another factor is the race for governor. The last thing Republicans and Democrats want to do is hurt their candidates for governor by closing down the government, which could help independent candidate Mike Duggan get elected.

What's next:

One way to avoid a shutdown would be to pass this year's budget again until a new one is ready. The governor, if needed, would likely sign it. In the meantime, she is reportedly working to keep as many state workers on the job if there is not a deal by October first. But if this optimism continues, the odds of that will keep going down.

DetroitPolitics