With the fiscal year starting October 1, 2025, lawmakers still haven’t agreed on a state budget—and residents, schools, and state employees are feeling the tension. You might wonder: why can’t Michigan just extend its budget like the federal government does? Get our free mobile appThe state constitution demands a balanced budget, which means no extra spending without the funds to back it up. READ MORE: Michigan School Concern to Feed Kids Amidst Possible Government ShutdownWithout state support, districts will have to make tough calls—cuts, restructuring, or emergency measures. State Employees in Uncertain TimesState employees are caught in the middle, too.