East Lansing council adopts initial deficit-reduction plan, splits on parks funding

East Lansing — The City Council on Tuesday approved an initial general fund deficit-reduction plan intended to reduce a projected shortfall in the fiscal 2026 budget.

The measure, adopted by a 3-2 roll-call vote after an amendment, directs staff to recognize additional revenue streams and to cut specified expenditures. Actions in the adopted package include recognizing lease revenue from the University Place Condominium Association and from city parking facilities, eliminating a proposed new EMS coordinator position in the fire department and instituting a convenience fee on some general-fund credit-card payments. Council also voted to reduce an appropriation to the 54B District Court by $71,000 as an add-on to the manager’s plan.

The plan sparked extended debate about whether the council should cut parks funding now or ask voters to decide. The adopted package reduces a planned city contribution to the Parks and Recreation Fund and moves to place a proposal for a dedicated parks and recreation millage on the Nov. 2025 ballot — a change that generated the most disagreement among council members.

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