LANSING — Officials have begun "contingency planning" for a partial state government shutdown but remain hopeful an agreement on a 2026 budget can be reached this month, according to a State Budget Office spokeswoman.

To avoid a shutdown, Gov. Gretchen Whitmer and state lawmakers must agree on a budget plan before Oct. 1, when the new fiscal year begins.

Though budget talks continue while Whitmer is on an overseas economic development trip to Asia, billions of dollars separate the budget plans passed separately by the Democratic-controlled Senate and the Republican-controlled House .

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