It's true: Michigan is one of 8 states that spent more money on incarceration than on its public universities in fiscal year 2011.
A statistic cited in the above referenced article states that prisoners in Michigan spend 17 months longer incarcerated than those imprisoned in 34 other states. According to Pew, "many non-violent offenders in... Michigan could have served significantly shorter prison terms with little or no public safety consequences."
So, Michigan is incarcerating non-violent offenders (aka drug offenders) for longer than most other states--so it simply has to skimp on higher education. Doesn't that make you feel safe and optimistic about the future?
It's kind of like the state fucking over everyone in the working and what's-left-of-the-middle classes (again? more?)--The state hit 'em both with one money move!
Way to go, Michigan! Another point for keeping your people down and uneducated.