She's also acted on climate change, an issue of particular importance in a state that depends so much on the auto industry. But rather than shun alternative energy and higher mileage standards, Granholm has pushed for Michigan to adopt wind, solar and biomass power and praised a deal that pushes fuel standards to 35.5 mpg by 2016.

Auto Bailout

Long before the 2008-2009 financial crisis , Granholm was trying to improve the plight of an ailing auto industry in Michigan. She first visited Washington, D.C., in 2005 in search of a federal bailout of the Big Three's health care and pension programs.

Three years later, in late 2008, Granholm blamed the worsening state of the auto industry on the financial crisis. "The reason why the autos are in this challenge is because of the meltdown in the financial market," she said. "They were on a restructuring path yes, they were challenged but this has utterly kicked them in the gut and is strangling them because they can't borrow money."

Granholm hasn't always defended the auto industry, once wishing the fortunes of the state weren't so tied to the auto companies. But when Washington began debating a bailout in late 2008, she became the industry's staunchest advocate. She defended it from those who portrayed it as a dinosaur that could not exist in the modern economy. She also rallied fellow governors who stood to benefit from the auto bailout and worked closely with Michigan's congressional delegation on securing money for the beleaguered industry. But the industry never got Congress to sign on, and instead had to accept a portion of the funds allocated under the Troubled Asset Relief Program (TARP).

Granholm harshly criticized Republican lawmakers like Sens. Bob Corker (R-Tenn.) and Richard Shelby (R-Ala.) who helped derail the bailout, accusing them of protecting foreign automakers in their states. She also said that last minute attempts to get United Auto Workers' concessions were an attempt at union busting. In a semi-controversial statement, Granholm accused those who voted against the auto bailout of being "un-American," adding, "It is such an unbelievable stab at workers across the country. You give this big bailout to these financial institutions-don't ask a single question, they can do what they want-and then you lay the blame for the auto industry, which is a victim of this financial meltdown, on the backs of the people who are working on the line."

When the Obama administration ousted GM CEO Rick Wagoner, Granholm came to his defense. She said he had worked for the company for 30 years and was trying to turn it around. "He's clearly a sacrificial lamb," she said.

The Environment

With the auto industry hemorrhaging hundreds of thousands of jobs, Granholm pushed for her state to produce more alternative energy as a way to rebound from the crisis. "In Michigan, we don't even use the words global warming or climate change," she said. "This is all about jobs. I just want to be really pragmatic about it."

Granholm has encouraged investment in wind, solar and biomass technologies and believes Michigan is uniquely able to produce alternative fuels because of its broad manufacturing base that can be retrofitted to build solar panels and wind turbines.

In September 2008, Granholm signed a bill creating a renewable portfolio standard that mandates 10 percent of Michigan's energy come from renewable sources by 2015. "This legislation will spark the investment in alternative energy we need to create jobs and diversify our economy," Granholm said.

Along with eight other Midwestern governors and two Canadian premiers, Granholm signed the Midwestern Greenhouse Gas Reduction Accord in 2007. The accord established greenhouse gas reduction targets and began the development of a regional cap-and-trade system to help achieve those reductions.

In February 2009, Granholm announced a plan to consider all feasible and prudent alternatives before approving new coal-fired power plants. She said the state would work to weatherize homes and upgrade energy technology in buildings. Gains in energy efficiency, she said, are the best way to avoid opening new coal plants.

Education

Granholm has advocated many measures to promote educationfor both the young and old. In 2003 she created Project Great Start, a public-private cooperative providing early childhood education throughout the state.

She also pushed for the Michigan Merit Curriculum, singed into law in April 2006. The law established new graduation requirements for Michigan high-school students. Starting with the class of 2011, students must complete four years of English and math and three years of science and social studies classes. At the signing of the law, Granholm said, the "new curriculum will help give Michigan the best-educated workforce in the nation and will bring new jobs and investment to our state."

In December 2006, Granholm signed the Michigan Promise scholarship, which provides $4,000 to every student who completes two years of college. Despite her support for new education programs, Granholm turned to schools in early 2009 when she needed to cut government spending. Granholm's plan called for a $59 per student cut in state spending for 2009. Money from the federal stimulus package was used to shore up the budget instead of the cuts in education spending.

Taxes

Tax issues dominated Granholm's first term. Recession gripped Michigan as the "Big Three" car companies faced job losses.

Granholm responded to the resulting $3 billion budget shortfall during her first year in officeby cutting spending wherever she could. She cut state aid to universities, cities, adult education and art spending while raising taxes on cigarettes and casinos.

Granholm also battled with the state legislature over Michigan's single business tax, the only tax levied against businesses in the state. Some argued that the tax prevented job creation.

The legislature repealed the tax in August 2006 and in June 2007, Granholm reached a deal to replace the 30-year old system with a plan that cut taxes by 70 percent for in-state businesses and allowed new companies to pay lower taxes for their first five years in the state.

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