City of Lansing short $7M on budget

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LANSING, Mich. (WILX) - The City of Lansing says it's $7 million short in its budget.

The Mayor's Office said it owes the IRS $2.5 million for filing its W2s late two years in a row.

Adding to the deficit is a $1.25M lawsuit settlement with homeowners who had sewage flood their homes in 2013.

There's also a $720,000 debt to cover health savings accounts created in 2014 that was never funded.

"We're looking at such a large hit," says Lansing City Council Member Patricia Spitzley."That's disturbing to me. It's easy to blame the previous administration, it's easy to blame this administration, but we all I think have to take responsibility for this."

The Lansing City Council is considering a budget amendment to move money from the reserve fund.

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