State shutdown may begin Monday.

Republican and Democratic lawmakers dueling over how to fix a $1.75 billion state budget deficit are nearing their final steps before turning and firing, with many Leelanau County residents caught in the crossfire.

One of them is Dan Joupperi, 10-year owner of Barrels and Barrels party store in Suttons Bay Township. He relies on shipments overseen by the state Liquor Control Commission to keep his customers happy, and his wife works for the Secretary of State's office. The liquor shipments may stop, and Secretary of State’s offices may close if the state government shuts down.

"I don't know how that would affect me," said Jouppen of a shutdown, which would begin Monday should lawmakers and Gov. Jennifer Granholm not broker a budget deal or extension of services.

"If the lottery closed, that would be a phenomenal loss," said Joupperi, adding that he fears the potential ramification of Secretary of State’s offices closing across the state. "My wife would lose her job and her benefits. That's the important thing, her benefits."

Lawmakers, who were accused of not taking the budget crisis serious as summer waned, have kicked their efforts into gear. The state Senate during a rare Sunday session approved a bill allowing state government to continue to run for 30 days while a compromise is worked out. If no deal is reached, a partial shutdown of state government will begin Monday.

State Sen. Michelle McManus (Lake Leelanau) is one of many Republican legislators who believe the confrontation in Lansing has been long overdue.

"I think it's been percolating for the last five years," said McManus. "If there ever was a time to get reforms, then it is right now, today."

Sides have been drawn largely along party lines. Democrats say tax increases are needed to maintain state services and blame past Republicans for approving cuts in the state income tax down to the present 3.9 percent rate. Republicans say state government has expanded beyond its need through the years, and should be reduced in conjunction with a pullback of the Michigan economy.

McManus has not signed a "no new taxes" pledge, as have some of her fellow Republicans, but she certainly leans in that direction.

Nobody has given me a good enough reason to vote for a tax increase," said McManus. "I have to have some things reformed before I even consider it … I have said the first thing that needs to happen is cuts, and we need to tighten our budget."

High on her list: Allowing local school districts to "pool" their health insurance policies with neighboring districts to find a better rate. Estimated savings of $160 million are predicted.

But as Republicans hold out for reforms and oppose tax cuts, the budget crisis is hitting home. Some legislative leaders believe that today is the deadline to avoid a shutdown, either through a budget compromise or an extension as suggested by the Senate.

Dan Schillinger, Leelanau County forester, said his job is secure for now only because conservation districts in Leelanau and Grand Traverse counties have agreed to dip into fund balances if needed to keep him on the payroll.

"We're all sort of sitting here, asking 'what's going to happen?’ If they haven't made a decision yet, both districts have agreed to float me for one month. We haven't heard a peep (from the state),” he said.

Secretary of State branches, including the one in Suttons Bay, have been warned that their doors may be closed on Monday, said Rosie Vasquez. She was helping residents at the end of day Tuesday as a sign above her head proclaimed the branch was "now serving (No.) 97."

"I think everybody in general is concerned about it, on both sides of the counter," said Vasquez.

A press release sent to branches by Secretary of State Terry Lynn Land suggested that residents in need of new license tabs or other services stop in before next week. In case state government does shut down, a Secretary of State "self-service station" on 1759 Barlow Road in Traverse City would be open to handle limited transactions.