Riverbend Heights developers pause RHID request for deeper dialogue with school district officials

In a recent meeting of the Lansing USD 469 Board of Education, key discussions centered around the proposed Riverbend Heights Infrastructure District (RHID) project, which aims to enhance local education funding through increased state aid. The meeting, held on June 2, 2025, highlighted the importance of open dialogue among board members, city officials, and financial advisors regarding the project's potential benefits.

The board acknowledged a previous decision to pause the RHID request to allow for further discussions with the county and school district. The project's proponents emphasized its potential to significantly benefit both the city and the school district, particularly through increased state funding. They noted that the RHID would not affect existing taxes or commit the school district to any debt, a point they felt had not been adequately communicated in earlier discussions.

A central theme of the meeting was the financial implications of the RHID. The board reviewed a study conducted by Raymond James, which indicated that the project could increase the school district's state aid percentage from 52% to as high as 76%. This increase could lead to a reduction in local property taxes, as more funding would come from state aid rather than local taxes. The study suggested that if the RHID were implemented, the school district could receive an additional $400,000 annually in capital outlay funding.

Board members raised questions about the assumptions underlying these projections, particularly regarding student enrollment and the impact of out-of-district students on funding. The discussion also touched on the potential for future bond issues and how they might affect state aid calculations.

As the meeting concluded, the board expressed a commitment to further explore the financial models presented and to engage in continued dialogue with stakeholders. The outcome of these discussions could shape the future of education funding in Lansing, making it a pivotal moment for the community.