Gov. Jennifer Granholm signed an executive order Wednesday to promote job creation and economic growth in Michigan by combining state departments.

The order would create the Department of Labor and Economic Growth by renaming the Department of Consumer and Industry Services and merging the functions of pre-existing departments.

"The department will allow state government to be more nimble and aggressive in creating jobs, enabling us to spend taxpayer dollars more efficiently, and will create a one-stop shop for business creation and development," Granholm said in a written statement.

The changes shouldn't directly impact MSU students as they enter the work force, said Kelley Bishop, executive director of MSU's Career Services and Placement.

"This doesn't raise any red flags immediately," Bishop said. "These changes are more streamlining and not directly relevant to students."

David Hollister, director of the Department of Consumer and Industry Services and former Lansing mayor, will head the new department.

State officials say no jobs will be lost with the executive order. By eliminating the Worker's Compensation Appellate Commission, the state will save a minimum of $1.2 million, said Granholm's spokeswoman Liz Boyd.

The commission will be replaced by appellate magistrates serving three-year terms that will respond to workers' compensation appeals. The order is considered one of the most comprehensive executive orders in the history of Michigan government.

Lawmakers have 60 days to approve or reject the executive order.

Senate Majority Leader Ken Sikkema, R-Wyoming, said Republicans might reject the proposal because of the elimination the Worker's Compensation Appellate Commission. The 6-member commission eliminated a backlog of 7,000 cases, and removing it could create problems, he said.

Under the order, magistrates would decide cases and if no decision is made, then a governor-appointed chairperson would make the decision.

Some lawmakers say the decisions would favor labor.