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Send Tax Increase An Option for Lansing's 2014 Budget
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Tax Increase An Option for Lansing's 2014 Budget
Posted: $util.date("h:mm a MMM d, yyyy",$story.contentLiveDate,$timeZone)
Reporter: Alyssa Fenske
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LANSING (WILX)-- With a nine-million dollar hole to fill no idea is a bad one. Raising taxes is never popular , but it's an idea both the Mayor and City Council President Carol Wood have thought about.
"We are close to our limit on what we can levy in taxes. We can go up to 20 million and were at 19.45 million right now," said Wood.
Wood says she likes an idea presented by state representative Andy Schor on raising city taxes for people who work in Lansing, but don't live there.
"We have an income tax for the city and right now residents pay 1 %, and non residents only pay .5%. The bill Andy Schor has introduced would raise non resident taxes to 1%,"
The .5% tax raise would affect more than 41 thousand people, and it would be expected to bring in thousand of dollars says City Treasurer Antonia Kraus.
Bernero is also in favor of the idea of raising the city income tax for non residents, saying it would level the playing field. But he doubts lawmakers would approve the idea. Instead, the mayor says he is once again looking at cutting more in the city government.
"We've had to continue to provide quality services while we make major adjustments in the city structure . Government is going to continue to do that I have no doubt," said Bernero.
Wood says there are other areas the city should also look at.
"Most of the union contracts are up this year. We should be seeing savings in healthcare was they work through those issues," said Wood.
Bernero says that he has no doubt he will have the budget balanced, and just hopes he and the council will see eye to eye on the issue.
"We are coming out of tough times, unemployment is decreasing, GDP is going up, and manufacturing is soaring. I think we are going to be lightyears ahead of other cities that stagnated during this period," said Bernaro.
Bernero will give his full budget report in March, it must be solved before the next fiscal year starts.
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