The legislation also includes a separate $1,500 permit for businesses to serve alcohol as early as 7 a.m. every day, including Sunday.

The legislation was proposed as a way to raise funds for Michigan’s struggling $40 billion budget, which faces a $2.8 billion deficit. State revenues could increase by about $13 million per year with the money from the permits, said Liz Boyd, a spokeswoman for Gov. Jennifer Granholm.

The money could be used to help fund college scholarships, including the Michigan Promise Scholarship, and a community government could decide not to allow the extended hours, she said.

State Rep. Mark Meadows, D-East Lansing, said selling the permits is an idea worth looking at as an option in a difficult economic climate.

“At this point in time, we’re looking for any potential revenue we can get our hands on because, obviously, we want to keep our promise on the Promise Scholarship, keep libraries open, fund K-12 to the greatest extent possible, keep funding available for that group of people that need Medicaid,” he said. “We are confronted with horrible economic circumstance here, so we’re looking at everything. ”

But many people question the negative consequences of keeping bars open later.

Passing the legislation could reflect poorly upon the state government, said state Rep. Brian Calley, R-Portland, an opponent of the bill.

“What would the state be saying by doing this?” he said. “It would be kind of odd for the state to try and balance the budget through increased consumption of alcohol.”

Allowing bars to stay open later could put a burden on local law enforcement, as more calls for service likely would occur later in the night, Calley and Meadows said.

And Calley doubted most bar owners would be willing to foot the $1,500 required to purchase a license.

Bar and restaurant owners have mixed reactions to the legislation, Michigan Food and Beverage Association President Ed Deeb said. Deeb said he feels $1,500 is too much to pay for extended hours.

Pat Riley, owner of Harper’s Restaurant & Brewpub, 131 Albert Ave., said he would not purchase a license because people simply would arrive at the bar later in the night, creating no increase in his business.

“There’s enough trouble in town,” said Joe Bell, owner of The Peanut Barrel Restaurant, 521 E. Grand River Ave. “Nothing good happens after 2 a.m.”

Spanish and comparative cultures and politics senior Ashley Porter, who spent nine months in Europe, where bars stay open until at least 6 a.m., said extending hours could have positive effects.

“In Europe, people stayed out until 6 and no one was dying in the streets like they do on college campuses,” she said. “In fact, maybe it would promote sobering up while you’re at a bar.”