In Michigan
3:31 pm
Tue June 16, 2009

Mich. senators vote to cut college scholarships

LANSING, MI – A Michigan Senate subcommittee has voted to eliminate a scholarship that gives thousands of state students up to $4,000 to help pay college bills.

The elimination of the Michigan Promise Grant would save the state up to $140 million a year. But Gov. Jennifer Granholm's administration likely will resist the move started by Tuesday's Senate subcommittee vote.

Lawmakers and Granholm are scrambling to eliminate a projected general fund budget shortfall of at least $1.8 billion for the fiscal year that starts in October.

Republicans who lead the state Senate and Democrats who lead the state House have different ideas about how the budget should be cut. But both parties say significant spending reductions must be made for the state to balance its budget.