Lansing's Deficit Not as Bad as Originally Announced

By: Fay Li Email
By: Fay Li Email

Update -- Putting together Lansing's FY 2014 budget is a moving target and in this case, it moved in the right direction. Mayor Bernero says the projected budget gap is much smaller because of a $2 million revenue increase from property taxes and healthcare savings worth another $2 million. City employees will get some relief from this budget.

"This budget includes no layoffs and no furlough days for our employees. I'm pleased with that because our employees have suffered, our employees have sacrificed," said Mayor Bernero.

The mayor wants to invest more into road and sidewalk repair and public safety and he's following suggestions of the financial health team to spend more on IT, prefunding retiree healthcare and increasing the rainy day fund.

"Those are things we can do that will take discipline to do and council approval to get done," said Mayor Bernero.

Council members have some of their own ideas on how to rake in more money for the city.

"That's anywhere from performing services that we might sell outside the city, whether that's other municipalities, whether that's doing some of their repairs in our garage," said Lansing City Council President Carol Wood.

The city may just have to get creative. Afterall, the new projected deficit is still $5 million. For now, Mayor Bernero is not revealing much about how he balanced the budget, but says citizens may see some fee increases and parking downtown could soon cost a little more.

Lansing Mayor Virg Bernero announced Monday the city's deficit is $5 million, a little more than half the $9 million figure the Mayor's office and financial health team had been using for two months. The Mayor announced an $11 million deficit in October of 2012. It was revised to $9 million in late January and to $5 million Monday. The reason for the latest revision is property tax revenue is up $2 million and the city saved $2 million on health care costs. The Mayor will present his budget proposal to the city council Monday night. Watch News 10 at 6 and 11 for coverage.

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  • by Name Location: Location on Apr 1, 2013 at 08:17 PM
    I pick up my kid from work at midnight 4 week nights out of the week. There is LITTLE TO NO TRAFFIC ON THE STREETS! BUT yet ALL the street lights are gleaming bright! TURN HALF THE STREET LIGHTS OFF AND SAVE MONEY! It would not hurt public safety! DUH that was a no brainer!
  • by Name Location: Location on Mar 27, 2013 at 11:41 AM
    Yet, they're laying off all the art, music and PE teachers in Lansing's elementary school.
  • by Name Location: Location on Mar 26, 2013 at 01:15 PM
    This isd becomming an annual event. Guess what things are just not that bad. Virg did this last year, and now again, only difference is he has wrung us dry on taxes.
  • by Lee Location: Location on Mar 26, 2013 at 10:41 AM
    Didn't this happen last year also?? Maybe Lansing is paying their accountant way too much!!
  • by Name Location: Location on Mar 26, 2013 at 04:18 AM
    Another Dumacrat crying, the sky is falling, the sky is falling! NOT! 51% of the uninformed!?!?!?
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