Michigan is closing one of its 32 prisons to save $22 million in the next fiscal year.
The Pugsley Correctional Facility in Grand Traverse County will close in September.
The prison has more than 1,300 beds and 230 employees.
The Corrections Department made the announcement Tuesday, a day before a legislative committee is expected to endorse the closure in the next state budget.
Corrections Director Heidi Washington says it is a "difficult day" for the staff at Pugsley, but closing a prison is the result of hard work to reduce Michigan's prison population.