Lansing May Get Big Financial Break from the State

By: News 10
By: News 10

Lansing would have to cut $1.5 million from its general fund without the state extension, possibly leading to massive public service cuts.

Lansing would get more time to pay back $1.5 million in development bonds under two bills headed to Governor Rick Snyder's desk. The city issued the bonds through the Tax Increment Financing Authority (TIFA) and used the money to make parts of Lansing more attractive to developers. It paid for things like parking lots, recreational facilities and land for construction. The problem the city ran into is that the tax revenue generated by the development wasn't enough to pay the money back on time. Senate Bills 629 and 630 will allow TIFA to extend the deadline. Without the extension, Lansing would have to come up with $1.5 million from the already-tight general fund. That could have meant cuts to the police and fire departments and other public services. The money will still be paid in full if the Governor signs the bills. Stay with News 10 and wilx.com to find out if he does so.


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