It’s not only the Detroit Big 3 that is experiencing great difficulty in the state of Michigan. The state itself is facing a $1.4 billion budget gap for fiscal year 2010 partly due to the collapse of the US auto industry.
Eight prisons are scheduled to cease operating affecting 4,419 prisoners. While non of the prisoners will be released early, 1,000 workers will be affected by the move. The closure of prisons are to save the state $120 million.
The Wolverine State is targeting the correctional system because it takes up 22% of the state’s general fund budget, the largest component. (Education is funded separately.) The state must close the $1.4 billion gap before its fiscal year ends on Sept. 30.
“It’s a trend we’ll be seeing more and more of in coming months given the dire revenue situation states are in,” said Sujit CanagaRetna, senior fiscal analyst at the Council of State Governments, a research group.
It’s not only Michigan that’s experiencing the squeeze. 25 other states will be cutting corrections expenses the coming fiscal year. The effect of the financial crisis has pushed states to find ways to cut any thing that can save them.
Source: CNN
