Gov. Granholm proposed a $38.6 billion overall budget Thursday.
Granholm's main focus was on education. She wants to restore the money schools began losing this month.
But, the state still plans to cut 25 percent of the money it gives schools for categorical spending, which pays for programs such as adult education.
School districts this month began absorbing a one percent cut to their per-pupil spending, cutting payments an average of $56 per pupil.
The governor will pay for restoring the per-pupil grants and programs for at-risk students through a combination of cuts and revenue enhancements.