The key date in Michigan in Oct. 20. If nothing is resolved by then, state officials will begin reviewing which 15,000 to 20,000 employees to furlough.
"If we are still in the same position a week from now, we've got some very real problems and concerns," said Kurt Weiss, a spokesman for the Michigan budget office.
Furloughed federal workers could eventually get paid if Congress later approves retroactive wages. But state workers dependent on federal funds could face complications because of quirks in local laws or collective bargaining contracts.
In Minnesota, some 100 Department of Health workers have received notices warning they may be laid off. So have 67 employees of the Minnesota Department of Military Affairs.