Officials hope halting road repairs, eliminating vacant jobs and reducing employee training will serve as stitches in the city's belt-breaking budget troubles.
The axed expenditures will help the city survive slashed state funding revenue, rising health care costs and an expensive first year for the East Lansing Hannah Community Center. Before the cuts, this year's $50 million budget emerged $622,515 in the red.
The amended budget is expected to be approved by city council at a meeting 7 tonight in its chambers, 101 Linden St.
"It's been difficult," Director of Finance Gary Murphy said of crunching numbers to balance the budget.
City officials say adjustments are complete to help the city overcome losses of $241,000 in state revenue sharing and another $478,300 in fire protection grants. A year-end executive order by former Gov. John Engler to balance state budgets negatively impacted municipalities statewide, including East Lansing.
Following the executive order, city officials expected money would be restored. But after assessing the state's budget, Mayor Mark Meadows said he is losing hope.
"We're in one of the most unusual budget circumstances that we've had since the '30s," he said, adding difficulties in East Lansing are a sign of greater troubles for communities in typically less stable areas of the state.
While possible restoration to funding for municipalities is on the table, it is among many other possibilities, state budget office spokesman Greg Bird said.
"It's being looked at just like everything else is," Bird said. "We have to take a look at many things. We have to weigh our options."
While the city adjusts for the cuts from the state, the budget is also being fixed for local costs.
Health care prices are $250,000 more than expected and the East Lansing Hannah Community Center, 819 Abbott Road, failed to generate revenues the city hoped. The center brought in $344,745 less than projected.
Even though the center missed some of its expected revenues, it's just beginning to grow in the community, said Councilmember Vic Loomis who serves on a committee assessing facilities like the community center.
"Whenever you miss budget numbers you need to be concerned," he said. "From that standpoint, it is a concern."
Juggling the budget will give the city $521,530 to put back into the general fund - which contains $29 million to pay for police and fire services, salaries for city administrators and public works operations.
The city also found some fat in the budget to trim in the crisis.
A project designed to improve the intersection of Coolidge and Coleman roads, while expanding Coolidge Road by two miles, left $270,000 in extra funds after completion.
Another $50,000 will be transferred from the fund for fine arts in the community, along with extra revenues from tickets and parking which is projected to bring in an additional $101,530. City officials plan to hold off on some smaller projects - including a sidewalk project which replaces small trouble spots around the city, street repairs, resurfacing a tennis court and purchasing a new pickup truck for maintenance - saving $217,000. Training for all departments not needed for certification were also cut and may be eliminated in future years, the report said.
Murphy's report said the city will not fill vacant positions, saving $258,000 by eliminating the jobs that were unfilled in 2002. Positions cut include deputy fire chief and two police officers on active military duty.
But the cuts did avoid layoffs of employees, which the city had hoped to avoid, Councilmember Bill Sharp said.
"The cuts we are making will hurt, but they are not fatal," Sharp said. "We will continue to supply the community with the services we supply."
Brian Charlton can be reached at charlt10@msu.edu.
