Mayor Mike Duggan has presented his final proposed budget to the Detroit City Council, signaling a capstone to the city's twelve successive years of financial balance. In an announcement on Monday, Duggan illustrated how Detroit has taken to reshape its fiscal landscape since it emerged from bankruptcy. As reported by the City of Detroit, homeowners in Detroit benefit from property tax reductions totaling three mills, which translates to a $150 break for those owning homes valued at $100,000.
This budget—amounting to $1.576 billion for the General Fund and more than $3 billion across all City funds for the fiscal year starting July 1—focuses on what the city deems most critical, including homelessness prevention, the Detroit Department of Transportation (DDOT), and community violence intervention initiatives.
Data points showcase a narrative of resilience and strategic growth. Against the 2014 Plan of Adjustment predictions of continued budget shortfalls and economic stagnation, Detroit has realized over a decade of balanced budgets and built a substantial rainy day fund alongside income tax revenues that have consistently outpaced expectations. In addition, property values have significantly appreciated. The Mayor notes that the solidarity between his administration and the City Council since 2014 has driven this achievement.
The FY26 budget includes increases across several sectors, with $209 million earmarked for DDOT alone—a $19.9 million augmentation from last year. This investment is intended to improve paratransit services and add 63 new drivers, raising the total to 690. Also noteworthy are one-time expenditures totaling $69 million, fueled by the previous year's surplus. Notable allocations include $30 million for the Risk Management Fund and $14 million for cleaning freeways, alleys, and commercial corridors.
As announced in the statement, the City Council's public hearings on the proposed budget will commence on March 11.
