As in past years, City of East Lansing officials are continuing to face significant, long-term budget challenges. These challenges include decreased revenue sharing from the state over the past 15 years, the ongoing impact of the collapse of the housing market in 2007, underfunded legacy costs (retiree, pension and healthcare) and the need to renew aging infrastructure in the community.
City officials have made sustained efforts to address these challenges over the past several years by restructuring employee benefits, making additional payments to legacy costs, significantly reducing the overall size of government and making other strategic cost-cutting decisions across all City departments. Despite these efforts, the challenges have persisted.
Earlier in 2016, the East Lansing City Council appointed a Financial Health Review Team to look at the overall financial stability of the City and consider new revenue options. The team is also looking at methods to address the City’s infrastructure and legacy costs.