Currently, Pennsylvania and Michigan remain the only two states without a budget for the 2025-26 fiscal year. While both have nationally recognized Democratic governors, and politically divided legislatures—the consequences of their impasses are different. In Pennsylvania, a budget delay does not automatically shut down the government, although it does cause significant strain locally. Because Michigan’s government cannot operate without an approved budget, the state’s ongoing standoff carries different risks compared to Pennsylvania. Without a budget in the coming weeks, Michigan could face a shutdown, potentially halting services. Pennsylvania is into its third month without a state budget.
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