Michigan’s budget standoff to continue for at least another week

Lansing — A push to restore nearly $1 billion in vetoed state funding for roads, hospitals and other programs remained frozen Tuesday inside the Capitol, and any action to thaw it won’t come for at least a week.

After negotiations between Republican legislative leaders and Democratic Gov. Gretchen Whitmer broke down last week, the state House scheduled a session day for Wednesday in case a deal could be reached. But the House scheduler said Tuesday that no votes will take place Wednesday.

That means a resolution to the budget standoff won’t come until Nov. 20 at the earliest. The House has set another tentative session day for Nov. 20 in case the two sides can reach a deal before then.

“When they have an agreement ready to go, the House and the Senate will be ready to move,” said Gideon D’Assandro, spokesman for House Republican Speaker Lee Chatfield.

But optimism about that happening soon remained low. Senate Minority Leader Jim Ananich, D-Flint, said conversations among legislative leaders and the governor were “relatively cut off” after the sides couldn’t reach a deal last week.

If the lawmakers fail to agree on a supplemental upon their return in December, there are “enormous potential consequences” for the programs depending on that funding, Whitmer said Tuesday.

“We’re almost a quarter into the fiscal year at that juncture and they’re going to be feeling it,” she said about the programs at issue. “But I can also tell you this: They shortchanged a lot of the departments, and we’re feeling it as well.”

Whitmer and House Speaker Lee Chatfield were “very close” to reaching an agreement last week, the governor said, but Senate Republicans pulled the plug.

Whitmer made $947 million in veto cuts to the Republicans’ approved budget at the send of September in an effort to get GOP leaders back to the negotiating table. She and Democratic allies also made $625 million in transfers within departmental budgets through the State Administrative Board.

Chatfield, R-Levering, and Senate Majority Leader Mike Shirkey, R-Clarklake, have been pushing to limit the State Administration Board’s ability to make similar transfers in the future before they agree to negotiate a new spending bill that would undo Whitmer’s vetoes. But Whitmer has repeatedly said she won’t permanently give away a power of the governor’s office in any deal.

Last Thursday was originally scheduled to be the last House session day before a three-week fall break for House members. Chatfield and Whitmer’s administration were discussing a potential compromise that would allow for language to be inserted in budget bills to give the Legislature some level of oversight on administrative transfers.

But Shirkey didn’t agree with the idea of putting language in budget bills as he wants a separate change in state law on the State Administrative Board’s ability to make transfers. The Senate adjourned Thursday without taking action on the budget stalemate.

The Senate has two session days scheduled for this week before leaving on a two-week break.The Senate is currently scheduled to return on Dec. 3.

Groups affected by the budget vetoes and transfers, including rural hospitals, nonprofit organizations and sheriff’s departments, have said they may have to begin making cuts to their services if their funding isn’t restored before the start of December.

“We are going to have to make some tough decisions sooner rather than later,” said Martin Manna, president of the Chaldean Community Foundation, which was set to receive state funding that was then cut in a department funding transfer.

Whitmer’s vetoes included $13 million for secondary road patrols, a grant program that finances county deputies to patrol county and local roads outside of a city or village. When Wayne County lost $1.2 million in state aid, the Sheriff’s Department moved two sergeants and six officers from road patrols to jail operations, said Undersheriff Daniel Pfannes.

“It will absolutely affect response times,” Pfannes said of the funding cut.

Asked about the Senate leader’s message to groups whose funding hangs in the balance, Shirkey’s spokeswoman Amber McCann said it was Whitmer who vetoed the groups’ funding.

“The majority leader and his colleagues took an affirmative vote to fund those programs,” McCann said. “The governor chose to defund those programs.”

Staff Writer Beth LeBlanc contributed

cmauger@detroitnews.com