LANSING ? Gov. Jennifer Granholm’s plan to close a $381.7 million deficit in the current 2004-05 fiscal year focuses on closing prisons, cuts to public universities and community colleges and cutbacks at the Family Independence Agency, according to a copy of the executive order reductions obtained by Gongwer News Service.

The executive order itself contains cuts totaling $233.1 million ($219.9 million general fund) – including reversing a $99.5 million school aid supplemental from late 2004. The Granholm administration will present its proposals Thursday for both bringing the current year into balance and for the 2005-06 fiscal year that begins October 1.

The administration will also seek an $85.5 million negative supplemental that will call for a 4 percent cut in Medicaid provider rates, a withdrawal of $73.8 million from the Budget Stabilization Fund, a $26 million withdrawal from the Medicaid Benefits Trust Fund and $2.5 million in escheats revenue enforcement.

The 2004-05 fixes will also require $45.8 million in spending increases, most of that in Medicaid.

Universities and community colleges bear a significant portion of the burden in balancing the current year and 2005-06 budgets although they would not be left out in the cold.

The executive order would cut $25.1 million from university operations (1.87 percent) and $4.9 million from community colleges (1.87 percent) in the current year with similar reductions proposed for 2005-06. But $100 million would be made available for major and special maintenance projects ($83.6 million to universities, $16.4 million to colleges) to offset the reduction in university operations.

Popular programs at Michigan State University also would be cut: 2.5 percent from MSU’s Agricultural Experiment Station ($823,500) and 5.8 percent from MSU’s cooperative extension ($1.65 million).

Revenue sharing aid to local governments would not be cut.

The administration also is proposing major changes to the state’s correctional system with $18.7 million in cuts for the current year. The executive order calls for closing the Mangum Farm Barracks (part of the Marquette Branch Prison), Camp Tuscola in Caro, Camp Sauble in Mason County, the Camp Tuscola annex and the DeMarse Training Academy (total closing savings: $3.44 million). Gongwer had first reported the administration giving serious consideration to closing a prison.

The proposal also recommends adjusting security levels at the Bellamy Creek, Boyer Road, Ojibway, Mound and Ryan correctional facilities for $2.87 million in savings.

The administration, in a supplemental, will call for closing the Benton Harbor and Saginaw Corrections centers ($589,100 in savings).

And the supplemental would cancel the state’s Youth Correctional Facility contract for $5.9 million in savings.

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