Gov. John Engler wants to slice between three and five percent out of state aid to cities and will ask the legislative budget committees next month to finalize the cuts. Normally cities around the state get about 20 percent of their money from state revenue sharing and these calls will put those local governments even deeper in debt.
In Lansing, Mayor David Hollister says he can promise there will not be any city layoffs as a result of the $1.2 million reduction. But he says he cannot extend that pledge to next year when incoming Gov. Jennifer Granholm may have to slice revenue sharing again.
Cuts in state aid to the cities could result in layoffs in other communities that do not have a rainy day fund, which is what Hollister will use to make up for the loss.