Gov. Jennifer Granholm, working to cut state spending at a time of rapidly declining revenue, issued an executive order eliminating the Michigan Department of History, Arts and Libraries, Crain’s Detroit Business reports. The move saved about $2 million a year and required that several items be moved to other departments, including the state library.

At the same time, the governor announced a new initiative to replace the current Library of Michigan with a new entity called the Michigan Center for Innovation and Reinvention. That initiative will come about in partnership with the city of Lansing and Michigan State University, which will receive most of the collections from the current library.

A press release from the governor’s office provides little in the way of details:

The governor is establishing a Michigan Center for Innovation and Renovation Board to examine the establishment of the new center that would be a transformed Michigan Library and Historical Center through a partnership with Michigan State University, the city of Lansing and other appropriate public and private partners. The board is outlined in Executive Order 2009-36 that abolishes the Department of History, Arts and Libraries and transfers that department’s functions to various other state departments, agencies and commissions.

“The MCIR would be another step forward in our ongoing efforts to make Michigan competitive in a global economy,” Granholm said. “The center would draw upon Michigan’s rich history of entrepreneurship for lessons to help stimulate the innovations needed for today’s knowledge-based economy.”

The MCIR would have several objectives, which would include promoting understanding of state history and the cultural diversity of Michigan citizens; educating children and adults in science, technology, engineering and mathematics; and enhancing the competitiveness of Michigan citizens in the world economy through research and education.

“The concept of MCIR is a modern vision for a modern Michigan,” said Michigan State University President Lou Anna K. Simon. “As we weather extreme economic distress across our state, it’s important we work together in new ways to promote the transformation of Michigan to a knowledge-based economy. The MCIR is a blend of technology and culture, and I’m excited about the opportunity the board affords to discuss refinement of the center’s vision and its promise of drawing future generations to the heart of Michigan to learn about our state’s history of reinvention through innovation.”

There was no indication of where the funding for the MCIR would come from.