Mattoon city officials will present their financial plan for the next year to the city council on Tuesday night.
City Administrator Kyle Gill says Governor Bruce Rauner is proposing a 50 percent reduction of state income tax and the cuts could reduce the city's revenue by $900,000.
Gill says Mattoon is prepared for a $400,000 decrease in funding but is still waiting on the state to release the official budget.
He says if the state reduces income tax by the full 50 percent there may be staff reductions.