The State of Michigan and the City of Lapeer continue their disagreement over whether or not the city is underfunded for retiree health care benefits to the tune of almost $25 million dollars. The State notified Lapeer of their denial of a waiver earlier last week, but city officiasls are confident they can take corrective action to change their status. State guidelines say a retirement pension plan meets the guidelines of underfunded if it is less than 60% funded and other criteria.