Economy
2:16 pm
Thu July 28, 2011

Snyder says Michigan “reasonably prepared” in case of U.S. default

Congress has until Tuesday to reach a deal on raising the debt ceiling to avoid default on some federal loans and other obligations.

Michigan Governor Rick Snyder says a possible default has him concerned.

“One of the challenges is (the federal government) haven’t told us exactly what it’ll mean. So we’re prepared for a number of scenarios.”

Snyder says Michigan could move money around to cover things like Medicaid payments until the federal government reimburses the state.

“I think we’re going to be in reasonably good shape, as long as it doesn’t go for an extended period of time.”

He’s hopeful Congress will come up with some solution by Tuesday’s deadline, or shortly after.