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Thu March 14, 2013
Financial Health Team Proposes Cuts, Consolidations
The financial health team commissioned by Lansing mayor Virg Bernero to come up with cost-cutting measures is preparing to release its final plan.
The team is outlining broad changes to the city’s pension and retiree health care systems. One recommendation would be for the city to transfer pension management to the Michigan Employees’ Retirement System, which could save the city an estimated $700,000 annually.
Team member Eric Scorsone says Lansing’s biggest challenge is tackling $450 million worth of unfunded employee legacy costs.
“The city has to really re-think how it’s delivering services, because it’s going to have a smaller workforce and likely going to have a smaller budget in the future," says Scorsone.
The report also suggests Lansing consolidate city and school district facilities and possibly sell the City Hall property and moving operations offsite. The team will present its final report to the Lansing City Council on Monday.