East Lansing City Council to get deficit report


The East Lansing city council will hear a report outlining a projected budget shortfall at a retreat tomorrow.

AUDIO: East Lansing city manager Ted Staton expects revenues to fall short by $5,000,000 in the rest of this fiscal year and the fiscal year that begins July first.

The city's options include dipping into reserve funds, cutting services, and raising the property tax rate.

Staton says he expects to end the current fiscal year having spent $2,000,000 less than had been budgeted. That would leave a $3,000,000 shortfall next year.

"We'll make recommendations on Saturday morning that fill at least two thirds of that", says Staton.

Staton adds that any property tax increase would only be meant to make up for what's been lost in property tax revenues due to falling home values. He wouldn't expect to use more than a few hundred thousand dollars from the city's reserves. The rest would have to come from service cuts.

The council will vote on a budget in May.