NewsRoom
5:27 pm
Tue October 1, 2013

Michigan Budget Chief: State Can Ride Out A Two-Week Shutdown

Michigan’s budget chief says the state can ride out a week or two of the federal shutdown without suffering big consequences.

But John Nixon says longer than that puts benefits for more than a million people at risk, and could threaten the state’s economic recovery.

We have more from The Michigan Public Radio Network’s Rick Pluta.

The biggest programs affected by a sustained shutdown would be food and cash assistance for low-income families and school lunches. State Budget Director John Nixon says the state has enough money on hand to carry the programs for two weeks.

“Is this shutdown for a couple of days the end of the world?” he asks.  “No. I would never say it’s the end of the world. If this thing goes on for a long time, it’s going to be a much bigger impact.”

Nixon says the state could lose $18 million a day if the federal government shutdown goes on for more than a few days.

Nixon says the state is not likely to tap into its savings to cover the costs of federal programs during the shutdown.