Pennsylvania and Michigan are the only states in the nation still without budgets for the 2025-26 fiscal year, each confronting consequences that reflect their distinct political landscapes.
Pennsylvania has entered its third month without a spending plan, a familiar situation in Harrisburg where budget gridlock is common. While state workers continue to be paid under a 2009 court ruling, schools, counties, and social services are left to borrow or dip into reserves while awaiting state funds. Transit agencies, particularly in the Philadelphia region, warn of cuts and fare hikes, adding pressure as lawmakers remain deadlocked over how to close structural deficits and fund public transportation. Proposals have ranged from tapping gambling revenues to legalizing recreational cannabis.
Michigan’s standoff carries different risks. Without a budget, the state faces a potential shutdown in the coming weeks that could halt services, furlough workers, and suspend operations such as food inspections and park maintenance. Unlike Pennsylvania, Michigan cannot continue government operations without appropriations. Previous short-term “continuation budgets” have averted shutdowns, but road funding has emerged as the central obstacle this year. Governor Gretchen Whitmer insists on a long-term plan to fix the state’s infrastructure, while House Republicans propose deep cuts elsewhere to redirect billions toward roads.
Both states share political similarities: Democratic governors with national profiles, split legislatures after redistricting, and ongoing battles over transportation funding. Yet the stakes diverge. In Michigan, Whitmer’s legacy and the livelihoods of state workers are on the line. In Pennsylvania, the effects fall hardest on local governments, schools, and transit riders, with taxpayers ultimately bearing the cost of short-term borrowing and potential fiscal gimmicks.
Source: PA Capital-Star