Page 13 - LRCC Jan 2023 FOCUS

lansingchamber.org ADVOCACY

LRCC Applauds City of Lansing’s Efforts to Reduce

Legacy Costs

he Lansing Regional Chamber services for Lansing residents,” Schor stated. “By working
of Commerce (LRCC) was very together and making some smart, responsible changes,
Tpleased with the announcement we have been able to bring this unfunded liability down
by Lansing Mayor Andy Schor that the significantly. There’s more to do, but this is an incredible
city is realizing significant savings to step forward.”
unfunded long-term legacy costs and
has reduced expected liability by nearly “Addressing legacy costs has been a priority for the Lansing
$400 million. Regional Chamber for several years,” said Tim Daman,
LRCC president & CEO. “The LRCC has been a partner
Lansing has struggled with unfunded Schor with the city of Lansing’s Financial Health Team since its
actuarial accrued liability (UAAL) inception to provide solutions and recommendations
obligations for years, peaking at approximately $907 to address these issues. Additionally, the Chamber was
million in 2020. That total includes the city’s pension costs supportive of the city creating a chief strategy officer
as well as retiree healthcare obligations, also known as position to specifically address legacy costs. While there
other post-employment benefits (OPEB). are no easy solutions, the fact remains that Lansing will
be unable to achieve other goals without addressing the
Schor prioritized the city’s financial stability early in his fiscal realities.”
first term and took several initial steps to address the issue.
The city was able to realize these savings by working with In 2012, the city formed a group of outside experts known
the city’s first Chief Strategy Officer, Shelbi Frayer, and as the Financial Health Team (FHT) to provide guidance
implementing reforms such as administrative rebidding, and direction to the mayor and city on various financial
plan administration changes, and prefunding OPEB by matters. LRCC has been an integral participant in the FHT
freeing up city funds through other efficiencies and cost deliberations.
savings.
“We want to thank Mayor Schor, Deputy Mayor Frayer, and
“Lansing’s long-term financial health was an important everyone involved in making the tough decisions that are
priority for me when I first ran for mayor. These costs now being realized,” said Steve Japinga, LRCC senior vice
represent retirees, and we have to be cognizant of that, but president, public affairs. “Our region needs a strong and
we also have to recognize the critical impact that our long- financially healthy central city so we can advance policies
term liability will have on future finances in the city and focused on growth and opportunity for all.” l

2022 Lansing Regional Chamber Policy Priorities Highlights FROM PAGE 10

REGULATIONS | LOCAL $42 billion in federal relief to HOUSING
GOVERNMENT FINANCIAL HEALTH food service businesses • Active member of the Housing
• Supported initiatives that now • Supported efforts to extend Drives Coalition at the state
show significant savings to social districts in downtown level
unfunded long-term legacy Lansing and East Lansing • Tri-County Regional Planning
costs have been reduced by • Opposed unnecessary Commission steering
$400 million in the city of regulations pertaining to local committee on housing
Lansing waste haulers • Supported legislation signed by
• Monitoring ARPA funds • American Rescue Plan the Governor that will establish
distributed to local Monitoring: Ensuring federal attainable housing districts,
municipalities COVID-19 relief funding is spent provide certain tax exemptions
• Supported the Creating Helpful wisely for residential rehabilitation
Incentives for the Production • Opposed the Inflation projects and expand incentives
of Semiconductors (CHIPS) for Reduction Act for neighborhood enterprise
America Act • Urged the Biden zones l
• Supported the Restaurant Administration to strengthen
Revitalization Fund to provide U.S. Energy Production

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