Tagged: debt

State Budget Director John Nixon says he’s unsure how Michigan will make payments to food stamp and welfare recipients and Medicaid providers if the federal government defaults, the Associated Press reports.

“Michigan draws about $400 million a week from federal funds that could suddenly dry up next week if the nation hits its debt limit and cannot pay its bills… Forty-four percent of Michigan's $45 billion budget is supported by federal funds, as are 25 percent of state workers.” the AP notes.

In an interview with the AP, Nixon says the state will do what it can to, “keep things moving.”

Meanwhile, Governor Snyder said yesterday that 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.”

Lindsey Smith reports, "Snyder says Michigan could move money around to cover things like Medicaid payments until the federal government reimburses the state." Snyder said:

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

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.”

Governor Snyder says the federal government hasn't yet explained to his administration how they will handle a possible national debt default. Snyder spoke Wednesday to WLNS-TV at the Ionia Free Fair.

"So we're on deck trying to get information from Washington as to what the order of cutbacks might be or payment-stream changes might be," Snyder said.

Mlive.com reports:

Snyder did not point fingers at either Democrats or Republicans in Washington, instead calling for compromise. "There's a lot of people that are in that process and they all need to come together," he said. "This clearly does not help matters".

Earlier today, on Morning Edition, NPR's Brian Naylor took a look at what the debt-ceiling debate would mean for communities across the U.S.:

Although almost every state must balance their budgets, they also rely on borrowing — selling bonds to investors for everything from meeting day-to-day cash-flow needs to funding major capital improvements.

"They borrow to finance long-term projects like infrastructure, road and bridge construction, as well as an upgrade of the telecommunications systems," said Kil Huh, who is with the Pew Center on the States. "These are activities that create jobs — in the long run have multiplier effects. And, essentially, If states need to postpone these in order to get more favorable terms, that's going to have an impact on those communities as well in terms of jobs and recovery."

The debt ceiling debate is still getting attention in Michigan. Many are voicing their opinions to government officials. One congressman says calls to his office are running about 50-50. Many support raising the debt ceiling and others want to reduce future debt by making cuts.

Michigan Congressman Bill Huizenga is a Republican from Zeeland. He says his concern is that the debt ceiling could double in the next ten years.

"All we need to do is have a slight hiccup in our interest rates – something that just even brings us back to historical averages of the last ten years and our spending on interest is going to explode. We’ve got to get this under control," Huizenga said.

The deadline to raise the federal debt ceiling from the current 14-trillion-dollars must be found by next week, or the nation could default on its debt.

- Amelia Carpenter - Michigan Radio Newsroom

President Obama and Congress have yet to find a solution to the nation’s debt crisis. Last night, President Obama and Speaker Boehner separately addressed the nation. They gave their explanations of why a deal hasn’t yet been reached. 

Republican Congressman of Michigan, Bill Huizenga talks with us about debt ceiling debates in Washington and what his concerns are moving forward.

A CBS poll on Monday shows 66% of Americans want an approach to balancing the federal budget that includes both spending cuts and tax increases.

Michigan Democratic Congressman Hansen Clarke talks about his concerns regarding the battle in Washington DC over the debt ceiling and budget negotiations. He says consumer debt is the real problem.

In the interview Clarke says:

"It's the personal debt that's crushing Americans and preventing our economy from rebounding."