The measure passed with five hours to go before the start of the new fiscal year as a method to solve a $1.75 billion budget shortfall.

House members initially voted against the tax increase.

The temporary budget extension passed with no votes against it and has already been passed by the Senate.

“Tonight, House Democrats acted in avoiding a government shutdown,” said Greg Bird, spokesman for House Speaker Andy Dillon, D-Redford. “We are putting forth a comprehensive proposal that will protect education, public safety and health care. We will continue to act on the remainder of our plan later this evening.”

An increase in the personal income tax rate from the current 3.9 percent was also tied to the 30-day temporary budget extension, Bird said.

All three pieces of legislation will have to go before the Senate and Gov. Jennifer Granholm.

Despite opposition from the Michigan Chamber of Commerce, the sales tax expansion passed with all Democrats except Rep. Marc Corriveau, D-Northville and Rep. Kate Ebli, D-Monroe. No Republicans voted for the legislation.

“An enormous tax increase would be very damaging to Michigan’s economy,” said Tricia Kinley, director of tax policy and economic development for the Michigan Chamber of Commerce.

“The Michigan Chamber feels strongly the budget solution should focus on reform and cuts in spending. Worse case scenario they implement a temporary income tax increase,” she said.

Legislators have been working all weekend to find a solution for the crisis. After a conference committee passed a bill Sunday morning to extend the state’s 6 percent sales tax to services, the Michigan House of Representatives failed to garner enough votes to pass it.

Only 52 House members, all Democrats, supported the bill, while six other Democrats and all of the House Republicans opposed the measure. Rep. David Agema, R-Grandville, was unable to vote due to a hunting trip outside of the country.

On Friday, state employees received layoff notices informing them not to report for work on Monday unless notified.

“The Department of Human Services will be open with a skeleton crew and only processing emergency cases,” said Sharon Parks, vice president for policy at the Michigan League for Human Services, a nonprofit organization that advocates for Michigan citizens and human services.