(La Porte, IN)- The city of La Porte is preparing for tough financial times.  On Monday night, the City Council approved a budget cut that trims spending for the remainder of the year by

$580,000.

Mayor Tom Dermody said the cuts were a first step to prepare for more scaling back of spending that will have to be done from next year’s budget.  He said state property tax caps will mean a 22-percent loss in city revenue in 2021.  Overall, the tax caps will mean over $3 million in lost revenue for the city.

Dermody said it appears another $500,000 will be lost from fewer dollars collected by the state in areas like income tax because of higher unemployment caused by COVID-19.

According to Dermody, the goal is not to have any job lay-offs resulting from the reductions in spending.