“The good news about this budget is that it’s done and done without a shutdown,” she said.
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The solution saw a slight increase to higher education.

MSU and other higher education institutions, K-12 education and community colleges received a 1 percent increase in the budget deal, however, there was a reduction in inflationary increases from those areas, Granholm said.

The governor had originally proposed a 2.5 percent increase in those areas.

“We’re pleased that it is at least over and allows us to move forward and get back to working with our economic plan,” Granholm said.

There was some fear that Granholm would veto about $56 million in student aid and grants for private college students, however, she said she wouldn’t.

State legislators were forced to make about $435 million in cuts to state departments before the end of the continuation budget, which would have ended today.

In September, legislators passed a continuation budget to extend the fiscal year to Wednesday in order to pass a 2008 budget and end a government shutdown.

The final bill for the Department of Human Services was sent to the governor’s office at 10:30 a.m. Wednesday, however, no bills have been signed, Granholm said.

The bill led to the privatization of the juvenile justice system and the closing of the medium-security section of W.J. Maxey Boys Training School in Whitmore Lake.

The governor did state that the Legislature and her office may go back and review the revenue that was adopted at the beginning of the month.

“The budget and the revenues that were decided earlier began to address and make very significant bites into the structural deficit of the state,” Granholm said.

“But we have significant reforms that we still have to do and some of those revenues that were adopted a month ago may be reformed again.”