The state legislature broke for the Easter recess without passing legislation to authorize the do-over, which would have been funded through donations, The New York Times (NYSE:NYT) reported. Granholm, a Democrat and Hillary Clinton supporter, had backed the plan and said she was "deeply disappointed."

"Now that the Legislature has decided not to act, we will turn our attention to other options," Granholm said. "There is no road to the White House that does not go through Michigan, so it is essential that Michigan voters have a voice in who will be our party's nominee and, ultimately, the next president of the United States."

Clinton, campaigning in Indiana, said if Florida and Michigan do not have a voice at the Democratic convention this summer "the legitimacy of the nominee" will be questionable.

The Democratic National Commitee ruled that Michigan's delegates to the convention may not be seated at the convention because the state violated party rules when it held its primary election Jan. 15.