End Violent Encounters of Lansing is feeling the effects of the state's budget crisis and may not be able to maintain its services.

The organization relies on state and federal grants to keep its services for domestic violence victims up and running, said Susan Shoultz, executive director of the Lansing-based organization. Because of the state's budget crises, EVE's grant dollars are being withheld for 40 days.

"It's very serious," Shoultz said. "We count on these dollars to pay our bills. We have no cash reserves."

In 2006, EVE provided shelter for 417 women, placed 467 women in support groups and helped 2,038 domestic violence victims obtain personal protection orders from the state, Shoultz said.

A personal protection order threatens a domestic violence perpetrator with arrest if they continue threats or violence against the filer.

"There are thousands of people impacted by domestic violence in this country every year," Shoultz said. "We're the only ones that do this mission."

Under an executive directive from Gov. Jennifer Granholm, grants are being delayed because of the harsh economic conditions currently facing Michigan, said Michelle Begnoche, the governor's spokeswoman.

The action will help officials identify all the areas the state can save money in during the budget, she said.

The state faces a combined projected budget deficit of nearly $3 billion.

Grants that the state deem necessary to protect citizens' health, safety or welfare are exempt from the order as well as ones required by a legal or federal mandate.

Even though EVE's grant is exempt from the directive, it can still be withheld for 40 to 45 days, said Greg Bird, spokesman for the State Budget Office.

While the grant must be distributed by that time, the state can use the grant dollars to help with the state's "cash flow issues" during that period, Bird said.

"There is the potential with some of the grants to be able to do that," he said. "This is one of a number of steps to help us with cash flow."

Because the Legislature has yet to pass a replacement for the Single Business Tax, withholding the grant money is one way the governor is temporarily dealing with the budget crises, Bird said.

"There are only so many things she can do without government approval," he said.

MSU could feel the effects as well, said John Bracey, executive director of the Michigan Council for Arts and Cultural Affairs.

Of the council's $10.1 million in grants, it has only been able to award $2.6 million, he said.

Many of the organizations, including Wharton Center and Kresge Art Museum, which receive grant money from the state and may not be receiving it.

To counter that, the organizations may be forced to take out loans to cover their expenses.

"I think you're going to find organizations that are going to be facing a serious debt situation," Bracey said.