CHICAGO - Michigan lawmakers and Gov. Jennifer Granholm on Friday announced an agreement on a $44.4 billion fiscal 2009 budget that calls for spending about $400 million less than earlier proposed in expectation of a weakening economy through 2009.

Lawmakers were poised Friday to begin voting on a slew of bills making up the budget. One lingering point of contention was Granholm's plan to borrow up to $300 million to fund the creation of 100 small schools across the state.

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