Lobbyists and spectators gather outside the House chambers during a session Wednesday, Sept. 30,... 
(AP)
One of the nation's most economically battered states is heading into more fiscal fights after surviving a short-lived government shutdown that ended with an interim budget and lingering uncertainty about more permanent spending cuts.
The interim budget avoided state worker layoffs and office closures. It also delayed some tough financial decisions in a state facing a $3 billion shortfall while struggling with the nation's highest unemployment rate, a shrinking auto industry, a high home foreclosure rate and an economy that soured long before the national recession.
With the stopgap signed by Democratic Gov. Jennifer Granholm, lawmakers have 30 days to put a permanent budget in place.
The interim budget was adopted less than two hours into Michigan's second partial government shutdown in three fiscal years — implemented after lawmakers failed to agree on a permanent budget before midnight Wednesday. Michigan's 2007 shutdown lasted four hours.
"Regardless of whether we're technically open or closed for business, this is a black eye on our state," said Republican Rep. Kevin Elsenheimer of Kewadin.
The interim budget became necessary after a deal to fill the shortfall with federal recovery dollars and more than $1 billion in cuts fell through. Many lawmakers discovered they couldn't stomach deep cuts to schools and local services in the stricken state.
But critics quickly faulted lawmakers for leaving groups relying on state money up in the air.
"School districts have had their own budgets in place since June 1, and have waited all summer for a financial commitment from the Legislature," Michigan Education Association President Iris Salters said.
Pennsylvania is the only other state without a budget enacted. Leaders there reached a tentative deal nearly two weeks ago, but have been unable to put all the pieces in place. Only Michigan and Alabama have fiscal years that start Oct. 1, and Alabama has passed its budget.
