Cuts to State Revenue Sharing

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To balance the budget, the state government plans in making a five-percent cut in state revenue sharing. Here in Lansing, that translates into nearly $1 million the city must cut from its budget.

City officials say the five-percent cut is good news, though. It is one-percent less than was initially expected. And leaders say the city has budgeted well enough to handle the cut. Mayor Tony Benavides says 20-percent of the cut will be covered by the city's rainy day fund. The rest will be made up in postponing some city projects, maintaining a hiring freeze and cutting operation costs.

The city says it is committed to keeping all vital services running as they are now. Police, Fire and Public Works won't have to make drastic cuts, and Benavides says there will not be any lay-offs.

Those departments have already made administrative cuts, and Police Chief Mark Alley says all city departments will have to work together to absorb the cut.