Lansing's Financial Health Team Works to Prevent Crisis - WLNS TV 6 Lansing - Jackson | Your Local News Leader

Lansing's Financial Health Team Works to Prevent Crisis

Posted:

LANSING, Mich. (WLNS) - Lansing's financial health team came out with their 60 plus recommendations to help prevent a financial crisis Thursday, much like the one being faced in Detroit.

"Our experts say that because of the structural deficit, we are now spending more on employee benefits and healthcare than we are on salaries," said former Lansing mayor David Hollister.

Restructuring those benefits is one of the team's primary concerns. Possible long-term solutions for pensions include moving all employees into the social security program and increasing the retirement age to match other private and public sector workers.

Potential changes to health care include requiring a worker's auto insurance to cover primary health coverage in an auto accident, moving to a uniform health care plan for all employees and creating a new health and wellness initiative to reduce health care costs.

The team also discussed proposals like boosting technology, reduction in city workers, even selling city hall to a private developer to relocate to a more up-to-date building.

Here are some of the recommendations that will be passed to Bernero on Monday:

Long-Term solutions

Pensions -

  • moving all city employees to the Social Security program
  • increasing the eligible retirement ages to match other private and public sector employers
  • evaluating a possible transfer of the pension system to the Michigan Municipal Employee's Retirement System (MERS) or another government body (i.e. City of Kalamazoo)

Retiree Health Care -

  • moving to a single health care plan for all City retirees
  • moving to a defined retirement health care benefit contribution, at least for new city employees

Health Care Benefits -

  • requiring City fees to use their auto insurance for primary health coverage when involved in an auto accident
  • implementing a health and wellness program to reduce health care costs
  • move to a uniform health care benefit plan with three options: 1) traditional self-insurance option, 2) a health maintenance organization option, and 3) high deductible option supplemented with a health savings account

City Hall

  • selling the current building to a private developer and moving to a more up to date facility
  • have the new city hall function as a multi-jurisdictional building

Technology

  • create a cloud-based financial management system
  • join the Courts and Law Enforcement Management Information System (CLEMIS) operated by Oakland County

Short Term

  • consolidating city services, specifically with the Board of Water and Light
  • eliminating the golf course subsidy
  • eliminating the cemetery subsidy
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WLNS. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.

Click Here to link to the FCC's public inspection file for WLNS-TV and Here to view the WLAJ-TV file. Persons with Disabilities who need assistance with issues relating to the content of this station's FCC public inspection file should contact: Teresa Morton- Program Director for WLNS and WLAJ at 517-372-8282. Questions or concerns relating to the accessibility of the FCC's public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or fccinfo@fcc.gov.