MSU officials feared last fall the programs would be eliminated after the state failed to issue their monthly payments during legislators’ budget negotiations.

Granholm announced in October an agreement to spare the programs if MSU redirected its focus on green initiatives. Granholm’s spokeswoman Liz Boyd said the budget proposal was made in the spirit of that agreement.

“We’re very supportive of that effort,” Boyd said.

Extension Director Tom Coon said the recommendation shows Granholm’s and the state’s commitment to maintaining the programs.

He said MSU is working to redesign the programs to be more cost-efficient.

“It’s fantastic,” Coon said. “It’s gratifying to have her acknowledge (extension and MAES programs).”

Coon said there are extension programs in all but one of Michigan’s 83 counties, with about 15 MAES stations across the state.

Extension programs are designed to apply research to economic development efforts in the state, Coon said. MAES stations conduct research in areas such as biofuels and alternative energy production.

Although the programs’ final appropriations are subject to approval from state legislators, Coon said he is confident MSU will receive the funding.

“We have always maintained really close communications with legislators all across the state,” Coon said.

Jeff Armstrong, dean of the College of Agriculture and Natural Resources, said officials mostly are concerned with what appropriations for higher education ultimately will be.

State legislators must close a $1.7 billion budget deficit for 2011.

“Our overarching concern is this is just one step of the process,” Armstrong said. “It’s a matter of how will higher education fare throughout the process.”

State Rep. Robert Dean, D-Grand Rapids, said he will support continued funding for extension and MAES when the matter arises during negotiations in the coming months.

Dean is a member of the House Appropriations Subcommittee on Higher Education.

“I was very supportive during the last budget cycle because of the extension service in Grand Rapids,” Dean said.

Coon said some legislators might not view extension and MAES programs as essential when fleshing out the final budget.

“Perhaps our programs are seen as ones that might be, in a way, a bargaining chip. That’s one suggestion people have made,” Coon said.

Coon said redesigning programs and operations to reduce costs might have factored into Granholm’s decision to maintain funding.

“I interpret the governor’s vote of approval being an indication that she’s supportive of the kinds of changes we’re making in our structure and in our focus,” Coon said.