LANSING-Most of the state's juvenile justice facilities and half its foster care facilities would be privatized under the Senate Human Service's Appropriations subcommittee proposed 2007-08 budget.

Sen. Bill Hardiman, chair of the committee, said that the state's budget crisis requires innovative ways of providing services.

"We must consider reconstructing and reforming our systems in ways that will allow us to continue to provide necessary services more efficiently and effectively," the Kentwood Republican said. "We can no longer make small cuts, slowly whittling away state services."

The changes would save the state $36 million a year, Hardiman said.

There are 700 to 750 juveniles in the state's juvenile justice system. The proposed changes would place 70 to 75 percent of them in private facilities, said Alan Bolter, Hardiman's chief of staff.

Maurene Sorbet, director of communications for the Department of Human Services (DHS), said her department doesn't support the proposal.

The proposal would increase the number of children in private foster care facilities to 9,000, Bolter said. As of now, Michigan has 18,000 children in foster care.

Privatization could cost about 600 state employees their jobs, Bolter said.

"There are public facilities that probably won't be needed," he said, and many of the state employees might be able to work at private facilities that will need more workers.

According to the DHS, there are 12 public juvenile justice facilities in the state.

Sen. Martha Scott, D-Highland Park, said that privatizing such services is a bad idea.

"Wholesale private management of child services closes the door on any public oversight we currently have, oversight necessary to maintain quality care," she said.

But Gerald Miller, who was director of the DHS's predecessor, said: "I think it's just the reverse."

Private companies are held more accountable than state services, Miller said, adding that private companies are always under the watch of the press and their shareholders.

"There is more at stake for a private company," he said. "The objective is to provide better service to the youth. Anytime you get competition, you're going to get better results."

Both public and private juvenile justice and foster care facilities are inspected annually, said Miriam Wilson, director of child welfare licensing at the DHS.

"They both have the same contract and rules," she said.

John DeTizo, director of labor relations for the Michigan Association of Governmental Employees, said that his union opposes the proposal.

"The size of state government is as small as its been since 1974," DeTizo said. "Every department is totally down to bare bones."

DeTizo said that since private companies are usually in business to make a profit, "they'll do it at the expense of the needy people."