Repubican gubernatorial candidate Dick Posthumus called the Michigan Education Savings Plan, which allows parents to save college money in a tax-free 401-K, "absolutely critical" for combating rising tuition rates at Michigan's universities.

Posthumus, currently lieutenant governor under Gov. John Engler, discussed higher education funding and mental health policies yesterday with The Michigan Daily prior to attending a fundraiser in Barton Hills.

Posthumus, of Kent County's Alto, is running against Democrat Jennifer Granholm, the state attorney general, in the Nov. 5 general election.

Income that parents save in an MESP account can be use to pay for their children's higher education, in which case it is exempt from federal and state taxes. Posthumus said storing money in MESP accounts is advantageous because "most working families can only put away a little (money) at a time."

In addition to the MESP, the second idea Posthumus outlined for higher education is fully funding Michigan's public universities through the state legislature. Posthumus proposed that the "appropriations to universities be tied to whether they increase tuition at the rate of inflation or not."

Posthumus also credited Engler for shutting down aging mental health institutions and appropriating more state mental health funds to community health centers. The centers are comparable to outpatient clinics - they provide patients with needed treatment, but the patients can reside with their families instead of living in the care centers.

"Families did not want to put them in a prison-like institution," Posthumus said. "It's important that the families be part of (the process)."

Turning to property taxes, Posthumus criticized Granholm for recently deciding to oppose property tax increases, which he called a reversal of her previous stance on the issue.

"What are you going to believe?" he said. "She doesn't have a solid understanding of what working men and women go through."

Posthumus pledged to avoid raising local property taxes.

In fact, much of Posthumus' campaign agenda centers around utilizing further tax cuts to spur continued job growth. Throughout his campaign, Posthumus has credited Engler's tax cut programs for motivating job growth and refueling a staggering economy, while promising not to raise a single tax.

Posthumus hopes to promote further job growth by cutting Michigan's Income and Single Business taxes. The two taxes, currently 4.2 and 2.1 percent respectively, were traditionally decreased .1 percent each year, but lower state revenues halted the cuts.

Posthumus began his political career managing Engler's campaign for the state House of Representatives. He was elected to the state Senate in 1982 and then replaced the governor as the Senate's majority leader in 1990 when Engler was elected to his first term as governor.

At the fundraiser, state Rep. Gene DeRossett, a Republican from Freedom Township who is seeking re-election, cited Posthumus' legislative experience as a reason to vote for him.