Eying Worsening Economy, Granholm Budget Would Shed 1,500 Workers

LANSING – Michigan’s economy will continue to get worse Governor Jennifer Granholm said in releasing a proposed 2009-10 budget that would spend $8.9 billion in general funds and see layoffs of 1,500 state workers by the end of 2010.

“The cuts and reforms I propose will be painful, but they are critical to help us weather this current economic situation,” Granholm said in her budget message.

With federal and restricted funds, the budget would total $44.2 billion, with $11.4 billion to the School Aid Fund.

It would cut the per pupil foundation allowance by $59 a student, cut universities by $100 million, cut the Department of Corrections by $120 million, cut the Department of Community Health by $106 million, cut the Department of Human Services by $100 million.

The budget also calls for closing the Mount Pleasant Center for Persons with Developmental Disabilities, overhauling the state ‘s merit scholarship, and combing the Cooperative Extension Service and the Agricultural Experiment Station at Michigan State University.

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