The city of East Lansing is now scrambling to find the cash after an income tax proposal failed on the November ballot.
FOX 47's Marcus Dash found out after talking with the mayor that all options are on the table to fund the city's pensions.
East Lansing Mayor Mark Meadows says they are considering everything when it comes to finding a way to fund the pension system.
The proposed income tax would have helped with some of the money, but now the city is left to find three million dollars.
Meadows says that money could come from cuts to the city's police and fire departments or from the closure of the aquatic, and community center.
"The objective is to take each one of those individual items until we get to 3 or 4 million dollars, people will probably see a difference in the way services are delivered in the city of East Lansing, " said Meadows.
Meadows is not ruling out the possibility of bringing back another ballot proposal to try and bring in more money for the city.
They plan on having a proposal for the budget cuts by the end of January.