A Detroit News editorial supports many elements of the cost-cutting proposal recommended by the Mackinac Center for Public Policy should Michigan's Single Business Tax be eliminated. The center proposes major cuts to government spending and using the money saved to fund the tax cut. Mackinac analyst Jack McHugh recommends more than $1.8 billion in savings through cuts and restructuring in higher education, State Police, public school health insurance plans and Medicaid and Welfare. Mackinac would base higher education funding on per-pupil grants, rather than giving each university a fixed amount. McHugh believes this would prod the universities to finally get serious about cost cutting. A 5 percent cut in university costs would yield $70 million.