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Managing Michigan's crisis is the state's governor, Jennifer M. Granholm. Talking recently with TIME in the parlor of her second-floor office in the state's capitol building, Granholm said that preventing a government shutdown before midnight Wednesday, the end of the state's fiscal year, "is going to require a level of cuts that people have not had before...

Author: /time Magazine | Title: Michigan and Granholm Face a Budget Deadline | 9/30/2009 | See Source »

...cuts could focus on funding for a range of public services, from health care to libraries and prisons. The impact on the state could be dire. There are concerns that cuts to prisons and police departments, for example, will lead to an increase in crime. And one of the Granholm administration's chief goals - doubling the number of Michigan college graduates - could be derailed by plans to cut a program that awards up to $4,000 to any student who finishes two years of college...

Author: /time Magazine | Title: Michigan and Granholm Face a Budget Deadline | 9/30/2009 | See Source »

...saying don't cut. But at some point, you hit a tipping point, and it becomes dangerous to the future of our state," Granholm said. (See how boosting Detroit's graduation rates will boost its economy...

Author: /time Magazine | Title: Michigan and Granholm Face a Budget Deadline | 9/30/2009 | See Source »

Since assuming the governorship in 2003, Granholm has moved to broaden Michigan's industrial base into such areas as energy and robotic technology - an effort that aims to tap into the skills of the state's sizeable population of scientists and engineers. "For 100 years, we've been focused on the automobile," says Granholm. "So we have an identity crisis." (See pictures of the remains of Detroit...

Author: /time Magazine | Title: Michigan and Granholm Face a Budget Deadline | 9/30/2009 | See Source »

...carving a new identity for Michigan has been tricky. Just two years ago, Michigan's government shut down for several hours when lawmakers could not pass a budget. At the end of last year, Granholm issued the first of two executive orders halting new hires and promotions, and limiting travel. Unsurprisingly, her legislative proposal to raise some $600 million with new fees and taxes - from a new license allowing Sunday liquor sales, and an increased tax on tobacco products like cigarillos - has failed to gain support...

Author: /time Magazine | Title: Michigan and Granholm Face a Budget Deadline | 9/30/2009 | See Source »

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