Mayor Schor’s new budget outlines proposed data center revenue plans

Lansing Mayor Andy Schor introduced his annual budget on Tuesday. It is less than 1% higher than the current budget and proposes to increase the amount set aside for a rainy day.

The budget is for $307.2 million, with $182 million of that being general fund. Schor’s budget asks for additional fire, police and code compliance workers as well as $7.5 million for wastewater treatment plant upgrades and $1.5 million for sidewalk repairs.

His budget proposal outlines how the city plans to spend an estimated $1 million in new taxes, if a controversial downtown data center is approved.

He plans to spend $400,000 on firefighter equipment, training and personnel; another $400,000 on housing rehabilitation and related programs and the rest split between facade improvement and neighborhood grants.

 

Full press release:

LANSING, Mich. – The Lansing City Council last night received Mayor Andy Schor’s Executive Budget Recommendation for Fiscal Year (FY) 2026-27, covering July 1, 2026 through June 30, 2027. The Budget reflects the priorities of Lansing and includes strategic investment in strengthening neighborhoods, parks, commercial corridors, and community needs such as public safety and critical infrastructure improvements. 

 

The proposed spending plan for the city is $307.2 million, less than a one percent change from the adopted FY 2026 budget, reflecting Mayor Schor’s continued commitment to maintaining services while remaining fiscally responsible. The proposed General Fund budget for FY 2027 is $182.0 million, a 5.0% increase from the adopted FY 2026 budget and 3.2% increase from the amended budget. The plan also maintains a General Fund “rainy day reserve” balance at 12% of expenditures pursuant to Council budget policies.

 

“I am proud to once again present a balanced, responsible budget that invests in our community. We have been responsible in our financial planning, utilizing state and federal grant opportunities to invest in infrastructure and necessary improvements, putting that money to work for our residents, while balancing our budget within our revenues,” said Mayor Schor. “In addition to further securing our future obligations, my budget proposal calls for investments in police and fire protection, sidewalk repairs, focus on economic development work, human resources, and funding many other priorities for the residents of Lansing.”

 

The Schor administration navigated several budget requests while putting together the proposal, taking into account resident input and feedback, Departmental needs, and new spending requests from the City Council. Several highlights in the proposed budget include the following:

• Three New LPD Detention staff, allowing 5 Officers to move from the jail to the streets
• Six Lansing Police Officer positions through continued funding from the state’s Public Safety Revenue Sharing and COPS grant
• Three additional Firefighters, an increase of one per shift 
• Two additional Code Compliance Officers
• Two additional 311 call center staff, fulfilling staffing needs in addition to helping residents at the upcoming Customer Service Center in the new Lansing City Hall
• Two Solid Waste Operators for Public Service to improve trash and recycling collection services
• Increased investments in road paving and projects, utilizing local and state dollars

• Combined Sewer Overflow separation projects continue to prevent pollution in our rivers by giving residents new underground infrastructure and new streets
• $100,000 for permanent speed control humps in neighborhoods
• $7.5 million for critical Wastewater Treatment Plant improvements 
• $1.5 million to repair, replace, and install new sidewalks
• $100,000 for gun violence prevention and intervention programs through the Lansing Empowerment Network
• Increased funding for the Advance Peace gun violence prevention initiative to $325,000
• Continued funding of the Violence Prevention Coordinator position in the Office of Neighborhood Safety

 

In addition, Mayor Schor has proposed a supplemental plan that would direct the spending of additional return on equity funds if the Deep Green Data Center project is passed by City Council. The proposed data center will provide $1 million in additional funding, and the Mayor proposed: 

• Lansing Fire Department – $400,000 for the following items:
  • Specialized gear for electrical hazard mitigation, chemical spill response, and confined space rescue. 
  • High-angle rescue certifications for firefighters.
  • Electrical hazard response training for firefighters.
  • HazMat operations and training for data center systems.
  • Additional personnel trained in technical rescue and HazMat operations to ensure 24/7 readiness. 
• Housing – $400,000 to be used to fund home rehabilitation projects and to backfill PILOT losses from new construction activity
• Façade Improvement Grants program – $100,000 increase 
• Neighborhood Grants program – $100,000 increase

 

The City’s long-term financial outlook remains a budget priority for the Schor administration. The pension and OPEB obligation is $60.6 million, which is stable as a percent of payroll and not going up.  In addition, the City is saving $500,000 per year due to earnings on the advance contribution from the $11.5 million that we received from the state.

 

Over the past few years, the Schor Administration has aggressively pursued grant funding, making strategic investments to save the City money in the long-term while also controlling our expenditures against inflation to get through these tough times and continuing to maintain the essential services that we are proud to provide to our community. These efforts have culminated in balancing the General Fund budget without the use of one-time dollars from the American Rescue Plan Act (ARPA) and other federal and state grants.

 

As required by the Charter, Mayor Schor formally submitted his FY 2026-27 budget recommendation to the Lansing City Council on Monday, March 23, 2026. Under provisions in the Lansing City Charter, the Council has until May 18, 2026, to adopt a final City budget plan for the next fiscal year which starts on July 1. 

 

Read Mayor Andy Schor’s Executive Budget Recommendation at www.lansingmi.gov/mayorbudget.