I've had this problem on a number of Craftsman machines. The 'right' way to fix it is to move the entire deck back on it's mounts. It's been a while, and I can't remember if there's any 'official' adjustment. There's no way to adjust the cable, but a 'quick' fix is to disconnect the cable at the lever end and physically tie a knot in it. This makes it about 1" shorter, which is enough.
Phil Saunders, August 2013