Lansing City 2014 Budget Projection Still in Hole, Not as Deep

By: News 10
By: News 10
Increasing city property tax revenue and dropping pension obligation cuts proposed deficit from $11 million to $9 million.

Lansing Mayor Virg Bernero is seen in an Aug. 29, 2007 photo in Lansing, Mich. Bernero said Monday, Dec. 21, 2009 he plans to create an exploratory committee as he considers challenging Lt. Gov. John Cherry and others for the Democratic gubernatorial nomination next year. The former state lawmaker will file paperwork this week and plans to decide whether to enter the race early next year. (AP Photo/Lansing State Journal, Rod Sanford)

The City of Lansing is still projecting a 2014 budget shortfall, but not as deep as first feared.

Randy Hannan, Mayor Bernero's chief of staff, tells News 10 that the deficit was first thought to be $11 million, but improved property tax revenue and a lower pension obligation has cut that to $9 million.

Hannan says taxes on property in the city of Lansing are still dropping, but not as fast as first thought. He also says the cuts that the city will be forced to make will still be painful.

The mayor must present a budget by the end of March and must be adopted by city council by the end of May. The budget takes effect on July 1.


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