The state of Michigan doesn't plan to lay off any of its 48,000 workers because of automatic federal spending cuts.
The news isn't so good for needy children who get public assistance to buy clothes at the start of the school year.
The state budget office said Monday that 21,000 children won't get an allowance of $137 to buy clothes in August because of the federal cuts. Gov. Rick Snyder says he won't try to offset $150 million in lost federal money with state dollars.
Federal education funding will drop $54 million and affect special education programs, after-school programs and aid for schools with more students in poverty.
Snyder says he supports getting the country's fiscal house in order but opposes across-the-board cuts like this.