Bob Emerson, Gov. Jennifer Granholm’s budget director, presented the governor’s new budget to a joint session of the Michigan Senate and House Appropriations Committees today.

“It would be hard to describe this as a terribly optimistic budget,” Emerson told the legislators. 

The $44.2 billion budget includes proposals to increase some fees and close tax loopholes adding as much as $230 million in added revenues to state coffers, while cutting $640 million in programs. As many as 1,500 state workers may lose their jobs.

The suggested cuts include closure of three more correctional facilities, elimination of the departments of history, arts and libraries and associated arts grants, elimination of before- and after-school programs through the Department of Human Services, and closure of Office of Drug Control Policy. In addition, the budget proposes reductions in spending on K-12 education by reducing the per pupil funding by $59 and three percent cut to university operations.

The proposal also includes more aggressive tax collection policies, elimination of tax loopholes, an increase in liquor license fees, and a tax increase on tobacco products other than packaged cigarettes. There would also be an increase in the annual state park sticker from $24 a year to $28 a year.