U.P. State Fair likely to lose funding

Citing Michigan's current economic woes, Governor Jennifer Granholm asked state legislators to cancel funding to Michigan's state fairs in her State of the State address tonight.

This funding is crucial to the annual Upper Peninsula State Fair, and without state funding the 80-year-old event may not survive, reports from Escanana indicate.

"I will not sugarcoat the severity of the [economic] crisis facing our state," Granholm said. "This past year has been brutal."

"Any honest assessment of our state's economy must recognize that things are likely to get worse before they get better."

Because state fairs are not an essential service, the government can no longer afford to fund them, Granholm said, adding that "the government can no longer be all things to all people."

Salaries of all elected state officials in Michigan will be reduced 10 percent, the governor said, and the number of government departments will be reduced from 18 to eight.

Other proposed money-saving measures include closure of three correctional facilities and returning the administration of state wetlands to the federal government.

Granholm said her long-term plan for Michigan would focus on three key areas:

- Fighting for more good paying jobs.

- Educating and training people to fill those jobs.

- Protecting Michigan families.

Because the economic bailout is only a one-time injection of funds into Michigan's economy, the state must diversify its economy and seek to bring in new industries, Granholm said.

"Not just new businesses, but new industries," she said, mentioning the state's growing film industry and renewable energy in particular.

For example, Motown Motion Pictures is spending $54 million for its new studio at a former General Motors plant in Pontiac.

Michigan is already leading the U.S. in the manufacture and production of renewable energy, and "demand is about to explode," because of U.S. President Barack Obama's proposed energy policies.

This will translate into new jobs, Granholm said, proposing that Michigan become the first U.S. state to allow renewable energy to be sold back to the energy companies.

She also promised to create a Michigan Energy Corps that would weatherize schools, install renewable energy sources in public and private buildings, and put people back to work.

Granholm also proposed the following initiatives to help the state survive its current economic downturn:

- Requesting Michigan's universities and colleges to freeze their tuition over the next year.

- Instructing utility commissions to ban utility shut-offs for the remainder of the winter.

- Introducing a law preventing home foreclosures by giving families 90 days to find new funding.

- Asking auto insurance companies to freeze rates for the next year, and instructing state agencies to pursue insurance companies that raise rates.

- Telling the people of Michigan to buy Michigan products whenever possible.

Despite funding cuts, Michigan will do its best to protect access to health care for children and other vulnerable people, Granholm said in concluding her address.