The city of Lansing says some of its revenue could be affected by economic uncertainty driven by tariffs.
Chief Strategy Officer Jake Brower said at a council meeting Monday, around a quarter of the city’s revenue comes from income taxes. And that, he said, can fluctuate based on economic conditions, like employment rates and whether people are working remotely.
“This is particularly sensitive to economic factors in terms of various financial risks that could come in the year ahead,” Brower said. “At the same time, we’re also seeing a lot of good, high paying jobs coming to the city of Lansing.”
Mayor Andy Schor proposed a $307 million budget, marking a 4.7% increase from last year.
That includes funds to hire a new firefighter, make façade improvements, repair sidewalks, repair the fountain in Reutter Park and more.
The largest chunk of money would go to the public services department, followed by the city’s retirement benefits, police department and fire department.
Among the investments in Schor’s proposed budget is $17 million for road repairs, which exceeds the $7 million City Council had requested.
While Brower said the city could have more than twice as much funding for roads if the Michigan Legislature passes a new road funding plan, he said the city is not considering that a possibility while crafting their budget.
“If they pass that funding, there will be additional revenues and improve the financial outlook of our two road funds, but if it doesn’t pass, we still intend to fulfill all of the road projects that are included in our capital projects,” Brower said.
City Council will hold a public hearing on the budget proposal May 5. They have until May 19 to approve the budget.
Produced with assistance from the Public Media Journalists Association Editor Corps funded by the Corporation for Public Broadcasting, a private corporation funded by the American people.