Lansing, Michigan, Mayor, Andy Schor speaks about the city's Sustainability Action Plan in September 2022. | Mayor Andy Schor/Facebook
Lansing, Michigan, Mayor, Andy Schor speaks about the city's Sustainability Action Plan in September 2022. | Mayor Andy Schor/Facebook
Lansing, Michigan, officials recently announced they reduced anticipated liability by almost $400 million.
The move significantly reduces unfunded long-term legacy costs, which Mayor Andy Schor called a priority, according to a Dec. 19 press release.
“Lansing’s long-term financial health was an important priority for me when I first ran for mayor,” Schor said. “These costs represent retirees so we have to be cognizant of that, but we also have to recognize the critical impact that our long-term liability will have on future finances in the city and services for Lansing residents.”
By working together and making smarter, more responsible decisions, the city was able to bring down unfunded liability dramatically, Schor said.
“There’s more to do, but this is an incredible step forward,” Schor added.
Chief Strategy Officer, Shelbi Frayer, worked on the initiative and employed reforms such as administrative rebidding, plan administration deviations, and prefunding other post-employment benefits (OPEB) by earmarking funds from cost savings and other measures, according to the release.
“We will always be a willing partner to the city and through our continued collaboration we have made substantial changes to the future viability of the city all while maintaining benefits to past, present, and future employees,” said United Auto Workers Local 2256 President, Dennis Parker, who also serves as the chairperson of the Lansing Employees’ Retirement System Board of Trustees.
The city created an organization of financial savants in 2012 with the Financial Health Team (FHT) to lead the city on cost-cutting measures that have come to fruition, according to the release. When Schor took office in 2018, he examined FHT suggestions and decided to work with other city leaders to execute them.
“Working together in the spirit of collaboration between my administration, city council, and our incredible labor force, these goals certainly can be achieved as we continue to focus on securing the long-term stability of the city’s finances,” Schor said.