Without a budget in place by Oct. 1, the state would not be permitted by its constitution to run state-funded programs and services, said Louis Meizlish, spokesman for Senate Majority Leader Mike Bishop, R-Rochester

“They can’t pay bills, bonds or anything like that,” he said. “It sends the wrong message to the state and country suggesting we cannot get our house in order, and we cannot allow that to happen.”

However, Senate Democrats are opposed to the bills because they said the measures eliminated the option of finding a solution to the budget problem immediately and instead prolong the problem.

“We agree with (Granholm) — and the House would agree also — we need a long-term fix in place and this continuation budget is just passing the buck,” said Tom Lenard, spokesman for Senate Minority Leader Mark Schauer, D-Battle Creek. “We could have passed some kind of overall agreement, and to do the extension before you have an agreement is completely backwards.”

Although Granholm is not in favor of a continuation budget, she has given her support to an increase in the state income tax.

“The Governor said (Monday) that unless lawmakers vote new revenue for the 2008 fiscal year she will veto a continuation bill,” said Liz Boyd, spokeswoman for Granholm. “She is willing to support a continuation bill but only, and I stress, only, if lawmakers step up and approve new revenue for 2008.”

The continuation budget bill would have to pass in the House and be signed by Granholm in order to go into effect.

Staff writer Nicquel Terry contributed to this story.