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.

Why this matters: City leaders described the plan as an attempt to realign ongoing operational spending with recurring revenues rather than rely on one-time reserves. Council members said doing nothing would force deeper cuts later or risk eroding the city’s fiscal cushions and credit standing.

What the council approved: City Manager Robert Bellman presented the staff recommendation to eliminate the use of $3,137,870 in reappropriated equity by boosting recurring revenue recognition and cutting selected line items. Specific items flagged in the adopted plan include: - Recognize $212,869 from University Place Condominium Association lease payments (partial-year amount already collected). - Recognize approximately $591,375 from parking-fund lease payments for city parking facilities. - Remove the proposed EMS coordinator position from the Fire Department budget (estimated savings about $135,810). - Institute a credit-card convenience fee for certain general-fund transactions (estimated savings $30,400 in the general fund). - Direct staff to ask county drain authorities to allocate drain maintenance special assessments to affected private, nonprofit and governmental property owners instead of the general fund (estimated savings $87,160). - Eliminate a proposed $2,641,470 general-fund contribution to Parks and Recreation, and place a proposal for a dedicated parks millage on the Nov. 2025 ballot. - Reduce the 54B District Court appropriation by $71,000 (added by amendment on the council floor).

Council debate and concerns: Council members split on the parks recommendation and the timing of the changes. Councilmember Mark Meadows (comments during debate) said he could not support cutting parks funding outright and urged discussion of alternative structures such as a recreation authority in partnership with the school district. Meadows said, “I just, I can't find myself reducing the budget of the Parks and Recreation Department.”

Councilmember Ian Altman pressed the urgency of election timing, arguing there is only one feasible window to seek a voter-authorized millage before the city must craft an even budget for fiscal 2027. Altman told colleagues, “I see the millage as an opportunity to let voters decide whether they wanna pay for something we might otherwise have to cut.”

Councilmember Sarah Watson said more data was needed before adopting cuts. “My concern here is that if we start diving into these changes before we know a significant mathematical component of what totally confronts us ... there’s a danger there in not having enough data,” she said during the meeting.

Vote and next steps: After an amendment adding the $71,000 court-appropriation reduction, the council approved the package on a 3-2 vote (Altman, Meadows and Singh in favor; Watson and Mayor Brookover opposed). Staff will implement the changes directed by council and prepare ballot language and timelines if the council proceeds with placing a parks millage before the state deadline for Nov. 2025 election submittals.

Officials and speakers: Robert Bellman, City Manager; Mark Meadows, City Councilmember; Ian Altman, City Councilmember; Sarah Watson, City Councilmember; Mayor Pro Tem Singh; Mayor Brookover. Council and staff said they will return to the council with required ordinance language, contract changes and budget amendments, and with any further details requested by council members.