Granholm cuts to close Ionia prison

LANSING, Mich. (AP) - Gov. Jennifer Granholm's budget director has unveiled $134 million in state government spending cuts, including the closure of a state prison in Ionia and a prison camp in Coldwater.

House and Senate appropriations committees approved it quickly and overwhelmingly, with a few lawmakers in dissent. The full Legislature does not need to approve the order.

Republicans are angry because they think the Democratic governor didn't go far enough since tax revenues are continuing to decline in the struggling economy. Budget Director Bob Emerson says it's likely more cuts will be needed.

The executive order is seen as a first step.

K-12 schools, universities and community colleges have been spared for now.

The closing of the Deerfield Correctional Facility will cut significantly into the Ionia tax base. The good news is most of the prisoners will be transferred to facilities in Ionia, and most of the prison employees will be transferred to other Ionia facilities

The bad news is some employees will be laid off.

"It's not good news, certainly," said Ionia City Manager Jason Epplear. "Corrections is very important to the community. Preliminary numbers reveal that between income tax revenue loss, water revenue, sewer revenue, we're looking at about $250,000 impact on the city's budget. There's impact on local business, there's impact on people being able to pay their mortgage, there's impact on the schools. It's certainly not a step in the right direction."