With a $920 million budget shortfall projected for the state this year, East Lansing officials are considering the effects of possible layoffs and cutting services such as road repair and public safety.

"We know that everything is on the table," said East Lansing City Manager Ted Staton. "We're prepared to take cuts."

Local municipalities across the state could encounter cuts in revenue sharing - money earned from the state sales tax that is given back to the community. If the city experiences severe cuts this year, officials might ask East Lansing City Council to dip into the city's $2.4 million rainy day fund, Staton said.

East Lansing saw cuts in its revenue-sharing dollars the past four years. About $146 million statewide was cut from revenue sharing last fiscal year, Staton said.

"Every year, the state seems to make a mistake about when the economy is going to bounce back," Staton said. "(The cuts) have been deep and painful."

East Lansing should be getting almost $9 million in revenue-sharing dollars, but because of budget problems, East Lansing currently is receiving $7 million. With adjusted budget cuts, the city could receive half that amount.

"The most we would expect to see cut (this year) would be half that amount, which would be devastating," Staton said.

A stipulation in the Michigan Constitution states that cities always must receive at least half of the amount appropriated to them. But Staton said cutting away half of East Lansing's revenue-sharing dollars will be detrimental to much-needed public services.

Public safety, road repair and library funds could be affected, and city departments could face layoffs, Staton said.

In response to the lost revenue-sharing dollars in previous years, emergency sidewalk repairs and road projects have been halted.

And as employees retired or left office, the city did not refill their positions in many instances as an alternative to laying people off. There are 12 vacant positions in East Lansing as hiring is frozen until budget problems ease up.

To curb the impact of more cuts, cities have been turning to the Michigan Municipal League to come up with solutions.

Mike Brady, director of state and federal affairs for the municipal league, said substantial cuts could influence how communities work, especially if employees are laid off. If revenue-sharing cuts are handed down, it will affect every city in the state, Brady said.

"The last thing most communities will do is cut cops and firefighters," Brady said. "When they start doing that, then they're in real trouble."

East Lansing police Deputy Chief Tom Wibert said four officer positions have been lost in four years.

"That's four less police officers that are out policing the streets," Wibert said.

Instead of cutting officers, Wibert said the department tries to cut down on overtime and equipment, but the continual budget trimming is leaving the department with few options.

"We've tried to cut things that wouldn't affect our level of service," Wibert said. "We've done our best to maintain our positions, but we're at our point where all the fat is gone."

The department hasn't fully discussed this year's budget situation, so Wibert said he's unsure of the severity of cuts.

"Massive layoffs would be the last thing that I hope we would do," he said. "That would be our absolute last resort."

Parks and recreation director Tim McCaffrey said his department saw two positions cut in the past two years.

"It affects your ability to ensure that all your facilities are maintained to the level that they need to be maintained," he said. "We're keeping up, but we believe we could be doing a better job if we had those additional positions in the budget."

McCaffrey said the department has yet to examine its budget and was unable to predict what problems more cuts could cause.

"Until we know how much the cuts are going to be, it's hard to determine just exactly what the impacts are going to be on our specific department," McCaffrey said. "Any reduction in the budget at this point in time could result in the loss of full-time positions."

Brady said numerous city officials from across Michigan have addressed Gov. Jennifer Granholm on the impact cuts would have on their departments and services. Granholm recently made revenue sharing one of her priorities for the next fiscal year.

And Staton said East Lansing and several other municipalities are preparing for another round with the governor.

"We intend to make a case over the next couple of months that (revenue sharing) supports basic services," Staton said. "If we lose that battle, we'll have to make some very painful decisions about what basic services to do less of for our citizens."

Sarah McEvilly can be reached at mcevilly@msu.edu.