LANSING, Mich. (WWJ/AP) – Job cuts have been announced at a state agency whose main job is to help create jobs.

According to the head of the Michigan Economic Development Corp., the MEDC is cutting 65 employees in response to financial strain.

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Steve Arwood says remaining employees will be trained to perform additional duties as the agency faces a “very hard budget,” starting Oct 1.

Arwood says the number of employees has already fallen to 307 from 336 since January, mostly through attrition.

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Why the cuts?

“The state budget’s being squeezed and the agency’s losing some money from Indian casinos,” reported WWJ Lansing Bureau Chief Tim Skubick.

The MEDC warned in August that it faced a steep drop in revenue, partly because of a dispute over payments from the Native American tribe that runs the Gun Lake Casino in Allegan County.

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