The Michigan Wolverines football team hasn’t done very well this year, losing their first two games to Appalachian State and Oregon, both at home. There are probably a lot of angry Wolverines fans. While the University of Michigan struggles, the budget in Michigan is struggling, too. Indeed, it appears that the state legislature and the governor are leading Michigan to a government shutdown come October 1st.
Michigan faces a $1.8 billion deficit. Like most states, each year the budget must be balanced. The governor and the lower house are controlled by Democrats while the upper house is controlled by Republicans. Governor Jennifer Granholm wants to increase taxes by $1.5 billion and cut $300 million in services, while State Senate Majority Leader Mike Bishop wants to increase taxes by $600 million, and cut services by about $1 billion. The two sides haven’t made much headway, and time is running out.
Needless to say, if you live in Michigan, you can expect your taxes will go up. I believe quite strongly that anyone thinking of starting a business in Michigan today might want to consider a neighboring state with a better business climate, lower taxes, and a better football team.