Detroit City Council approves $3B budget for 2025-26

The Detroit City Council approved a $3 billion budget after making roughly $26 million in changes. 

Monday’s vote wrapped up three weeks of hearings and another week of negotiations to shift funding in Mayor Mike Duggan’s recommended 2025-26 budget and fund the priorities of council members. The final budget includes more money to hire police officers and bus drivers, a slight property tax cut and eliminates funding for the Detroit Land Bank Authority. 

Detroit’s income tax is expected to create $432 million in revenue for the upcoming fiscal year, while wagering taxes on casinos will create $292 million and property taxes will create $174 million. State revenue sharing provides $253 million.

It’s Detroit’s 12th consecutive balanced budget since exiting bankruptcy in 2014 and Duggan’s final budget as mayor. He will leave office when his term expires this year. Duggan has until April 11 to veto the budget, though the council could override the veto by a two-thirds majority vote. 

Related:

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Duggan has emphasized the strength of Detroit’s financial reserves, which includes $455 million in the Retiree Protection Fund and $150 million in the city’s “Rainy Day Fund” budget reserve. 

The budget includes $172.6 million in contributions to the city’s legacy pension obligations. It adds 216 full-time staff positions, raising the total to 11,363. 

It’s also the last budget for Council President Mary Sheffield and Council Member Fred Durhal III in their respective roles. Both members are running for mayor this year.

Sheffield thanked her colleagues, who likewise said they appreciated her leadership and patience throughout the budget process. Durhal, who chairs the Budget, Finance and Audit Committee, said Detroit leaders have put in a lot of work to put the city on solid financial footing. 

Roughly half of the budget couldn’t be touched by the City Council, only the $1.58 billion in discretionary spending included in the General Fund.

Changes represent 2% of the General Fund and 1% of the overall budget. Council members also crafted a list of unfunded programs and recommendations they want Duggan’s administration to consider supporting.

The City Council underwent a laborious, and sometimes contentious, process to secure funding for their priorities. Council President Pro Tem James Tate Jr. said they each made concessions to work within the available funding, but “there’s a lot more I would have loved to put in here.”

Despite strong calls from transit advocates to increase Department of Transportation funding by $16 million, the City Council did not adjust Duggan’s budget recommendation. DDOT Director Robert Cramer said the department doesn’t have capacity to spend more money after a $20 million boost was already included in the transit budget. 

“This proposed budget is an incredible show of support already,” Cramer said last week. “It gives us a lot to work on and a lot to work with. I’ve got to balance how far we can push with what we can realistically implement and make sure that we’re able to maintain a level of reliability and service quality along the way.” 

A request to increase the DDOT budget by $16 million dropped to $2 million, then further reduced to $673,000 in one-time surplus funding to replace seats on 50 buses, according to Durhal’s office.

Duggan’s administration found $12 million in surplus revenue from the current budget year that could be put toward projects that otherwise wouldn’t have been funded. This includes $2 million to install additional bus shelters and $50,000 to study the city’s paratransit service.

Council members started with $86 million in proposed adjustments to the budget, including 258 line items for deliberation. By Friday morning, the council whittled their list to $62 million. After a meeting that ran late into Friday night, they had cut it down to $36.5 million.

Monday’s special session ran late into the evening, largely to give the Legislative Policy Division and Office of the Chief Financial Officer time to draft updated documents. Sheffield’s office bought her colleagues dinner from Fishbone’s in Greektown.

The final votes were held just before midnight.

Funding for council priorities was shifted from other parts of the overall budget. The council eliminated the entire $5 million recommended subsidy for the Detroit Land Bank Authority, further dropping from $10.5 million last year. Council members said that they felt comfortable with the cut because the land bank has $52 million in reserves.

The council used $2.2 million from the land bank subsidy to increase funding for a lead paint encapsulation program, which covers lead hazards in older homes. 

The council also cut $5 million from the Construction and Demolition Department for blight activity and $1 million from a cleanup program for alleys, highways and land bank properties. 

Council members largely sponsored funding adjustments individually, but a few one-time expenses had the entire council’s backing, including: 

• $3.7 million for a Community Land Trust Fund 
• $3 million for the “ShotStoppers” community violence intervention program 
• $2 million for the Department of Transportation to build bus shelters and hire drivers, increasing the total budget to $211 million.
• $1 million added to a Housing Trust Fund used to develop affordable housing at the Housing and Revitalization Department 
• $500,000 to the Office of Eviction Defense to improve outreach efforts 
• $300,000 added to clean 1,000 alleys across the city

Council Member Latisha Johnson said Detroit needs to subsidize Community Land Trusts to create sustainable low-cost housing for the city’s poorest residents. Johnson said developers and investors can’t afford to provide low-income housing without the government’s help.

The council had access to $14.5 million in unused federal American Rescue Plan Act (ARPA) funding that must be spent by the end of 2026.

The council voted to direct $5 million to homelessness services instead of being used for demolition projects. Council members will divide the remaining $9.4 million among their nine offices to spend on existing ARPA programs. 

Council members have sought greater control over federal pandemic funding in past budget cycles, but this was the first time Duggan’s administration gave a lump sum to the body to allocate as they see fit. However, the funds can only be used to boost existing ARPA programs instead of creating new ones. 

Duggan’s administration also committed to fund a list of council initiatives without the council needing to make specific changes, including:

• Establish a reimbursement program for businesses impacted by road construction projects using Strategic Neighborhood Funds. 
• Prioritize use of federal grant funding to expand installation of accessible benches and shelters at bus stops. Include bus stop curb and landing pad improvements for all bus stop projects. 
• Create a marketing campaign using state grant funds via the Right to Counsel program
• Double the subsidy for the Charles H. Wright Museum of African American History totaling $2 million.
• Allocate $1 million to the Detroit Historical Museum for one-time operational support. 
• Allocate $1.55 million to the Detroit Zoological Society. 
• Fund capital improvements to Riverside Marina totaling $750,000
• Start a skilled trades apprenticeship program through the Detroit Employment Solutions Corporation with $250,000 per year for five years. 
• Add $250,000 to Eastern Market to support Black farmers. 
• $43,000 toward mileage and parking reimbursement for members of the Board of Review 

Keep reading for a breakdown of what projects each council member secured funding for. Items that were sponsored by multiple council members are listed under each member. 

Council President Mary Sheffield, District 5

Sheffield started with 44 line item requests for funding changes. Here’s what made it into the budget. 

• $2 million in one-time funding to increase the budget for home repair programs at the Housing and Revitalization Department. Council Member Gabriela Santiago-Romero is a co-sponsor.
• $1.5 million in one-time surplus funding to increase the Detroit Legacy Business Program budget, which offers grants to longtime Detroit businesses.
• $1 million in one-time funding to support eviction prevention and diversion, which had been cut from Duggan’s budget proposal.  
• $600,000 in one-time funding for a Buildings Safety Engineering and Environmental Department Concierge Project Management Team to assist with development in the city; to provide a better customer service experience. 
• $600,000 in one-time funding for a concierge project manager to help small businesses and developers navigate obtaining compliance with BSEED. Council Member Fred Durhal is a co-sponsor. 
• $534,788 in recurring funding to keep six citizen complaint investigators with the Board of Police Commissioners. The positions were previously funded with federal pandemic relief dollars and aim to address a backlog of police complaints.
•  $500,000 in one-time surplus funding to increase an entrepreneurial challenge grant program, raising the New Detroit Smart City Tech grant budget to $700,000 total. Council Member Gabriela Santiago-Romero is a co-sponsor.
• $500,000 in recurring funding to restore the Goal Line Detroit program budget. Council Member Angela Whitfield-Calloway is a co-sponsor. 
• $467,702 in recurring funding to support the Auditor General budget, raising the total to $5.8 million. 
• $314,752 in recurring funding to increase the Office of the Ombudsman budget to $2 million total. 
• $250,000 in one-time funding to create a senior food access program in the Office of Sustainability. 
• $200,000 in one-time funding to lease two vans to expand a youth workforce development program with the Detroit Employment Solutions Corporation. Council members Durhal, Whitfield-Calloway and Waters are co-sponsors.
• $34,000 in surplus funding to create a senior transportation program at the Detroit Zoo. Council Member Angela Whitfield-Calloway is a co-sponsor.

Council President Pro Tem James Tate, District 1

Tate started with 22 budget recommendations. Here’s what made it into the budget. 

• $1 million in one-time funding to launch an upskilling and workforce development program in the Brightmoor neighborhood. 
• $500,000 to create a universal design voucher program at the Housing and Revitalization Department. 
• $326,244 in recurring funding to add a manager of investigations position within the Office of Inspector General, raising the total budget to $2.25 million. 
• $190,000 in one-time funding for the James E. Tate Community Center. 
• $107,445 in recurring funding to open the Crowell Recreation Center on Saturdays.

Council Member Angela Whitfield-Calloway, District 2

Whitfield-Calloway started with 24 budget items for consideration. Here’s what made it into the budget. 

• $500,000 in recurring funding to restore the Goal Line Detroit program budget. Sheffield is a co-sponsor. 
• $500,000 in one-time funding to increase the number of recycling trash bins managed by the Department of Public Works on city streets across Detroit.
• $200,000 in one-time funding to lease two vans to expand a youth workforce development program with the Detroit Employment Solutions Corporation. Council members Durhal, Sheffield and Waters are co-sponsors. 
• $50,000 in recurring funds to provide a mileage stipend for members of a citizens blight patrol at the General Services Department. 
• $34,000 in surplus funding to create a senior transportation program at the Detroit Zoo. Sheffield is a co-sponsor.

Council Member Scott Benson, District 3 

Benson started with 31 items. Here’s what made it into the budget. 

• $700,000 in one-time surplus funding for operational support for the Charles H. Wright Museum of African American History.
• $220,000 in recurring funds to hire three BSEED property inspectors to improve code enforcement. Council Member Fred Durhal III joined Benson on the request. 
• $146,000 in recurring funds to restore full-time positions in the Health Department’s food code enforcement program.
• $100,000 in one-time surplus funding for the Detroit Economic Growth Corporation to create a corridor and streetscape strategy for the Van Dyke Corridor. 
• $20,000 in one-time funding to the Detroit Economic Growth Corporation for cultural events like the Kwanzaa Celebration and Kinara Lighting.

Council Member Latisha Johnson, District 4 

Johnson had six line items at the start of the process. Here’s what made it into the budget. 

• $200,000 in recurring funding to create a public website that tracks the status of development projects. 

Council Member Gabriela Santiago-Romero, District 6

Santiago-Romero had 21 items to start. Here’s what made it into the budget. 

• $2 million in one-time funding to increase the budget for home repair programs at the Housing and Revitalization Department. Sheffield is a co-sponsor.
• $1.55 million in recurring funding to add salary and fringe benefits to each City Council member’s office. At-large members received $250,000 while the seven district representatives received $150,000 each. 
• $500,000 in one-time surplus funding to increase an entrepreneurial challenge grant program, raising the New Detroit Smart City Tech grant budget to $700,000 total. Sheffield is a co-sponsor. 
• $300,000 in one-time funding for the Legislative Policy Division to study the economic outlook of District 6, including considerations of streetscapes and equitable development. 
• $200,000 in recurring funds to hire two full-time staff for language access services in the Civil Rights, Inclusion and Opportunity Department. 
• $130,000 in recurring funding to hire two administrative support staff to address citizen complaints filed to the Board of Police Commissioners. 

Council Member Fred Durhal III, District 7

Durhal had 65 budget line item requests. Here’s what made it into the budget. 

• $200,000 in recurring funding to establish a standardized permitting process at BSEED 
• $775,000 in one-time surplus funding for upgrades to Rouge Park, including demolishing a comfort station at Tireman and Spinoza, reopening a comfort station at the Brennan Recreation Area, installing new benches and trash cans, and renovating the nursery building. 
• $600,000 in one-time funding for a concierge project manager to help small businesses and developers navigate obtaining compliance with BSEED. Sheffield is a co-sponsor. 
• $750,000 in one-time surplus funding to support a project to upgrade Shed 4 at Eastern Market. This would increase the Eastern Market subsidy to $1.75 million. 
• $500,000 in one-time funding to the Detroit Economic Growth Corporation to boost the Motor City City Match grant program. 
• $400,000 in recurring funding to “fully fund” the Office of Disability Affairs. The increase raises the total budget to $1.4 million. 
• $377,000 in recurring funding for four full-time positions to implement the legislative search program. 
• $308,593 in recurring funding to the Board of Ethics Budget, adding one full-time staff position and increasing the total budget to $899,788.
• $220,000 in recurring funds to hire three BSEED property inspectors to improve code enforcement. Benson is a co-sponsor. 
• $200,000 in one-time funding to lease two vans to expand a youth workforce development program with the Detroit Employment Solutions Corporation. Sheffield, Whitfield-Calloway and Waters are co-sponsors. 
• $200,000 in one-time funding to create a public web tool that allows residents to search city legislation and ordinances, similar to tools offered by the Michigan Legislature. 
• $100,000 in one-time surplus funding for the Detroit Economic Growth Corporation to study the viability of tax abatements and upcoming expiration of abatements. 
• $100,000 in one-time surplus funding to study the expansion of corridor improvement authorities. 
• $80,000 in one-time surplus funding for the Detroit Police Department to create a personal alert program for disabled residents who are prone to go missing. 
• $75,000 in one-time surplus funding for wearable alert devices for disabled residents who are prone to go missing.
• $50,000 in one-time funding to create a student pipeline for skilled trade jobs with the Detroit Economic Solutions Corporation. 

At-large Council Member Coleman Young II 

Young started with 25 line item requests. Here’s what made it into the budget. 

• At-large Council Member Coleman Young II 
• Young started with 25 line item requests. Here’s what made it into the budget. 
• $330,000 in recurring funding to increase compensation for elected officials, increasing the budget to $2 million.
• $231,000 in recurring funds to hire three full-time staff members to support the Board of Review. Benson is a co-sponsor. 
• $200,000 in surplus funding to add a shelter at Kemeny Park. Durhal and Santiago-Romero are co-sponsors. 
• $200,000 in one-time funding to market an asset protection program managed by the Housing and Revitalization Department.
• $200,000 in one-time funding to market a 0% interest home repair loan grant program managed by the Housing Department. 
• $100,000 in recurring funding for the Department of Innovation and Technology to expand a data warehouse.
• $75,000 in one-time surplus funding to the Airport Department to commission studies for air taxis and drones to carry freight at the Coleman A. Young Municipal Airport. 
• $65,000 in recurring funding to create a marketing campaign for the Board of Review.

At-large Council Member Mary Waters 

Waters started with 25 line item requests. Here’s what made it into the budget. 

• $1 million in one-time surplus funding to the Detroit Historical Museum budget.
• $500,000 in one-time funding to a workforce housing fund to help existing home owners afford capital improvements. 
• $500,000 in one-time funding to create a comprehensive voter education campaign through the City Clerk’s office.
• $250,000 in recurring funding to support a skilled trades apprenticeship program operated by Detroit Employment Solutions Corporation. 
• $200,000 in one-time funding to lease two vans to expand a youth workforce development program with the Detroit Employment Solutions Corporation. Sheffield, Durhal and Whitfield-Calloway are co-sponsors. 
• $150,000 in one-time funds to support the NextUp 313 program for young entrepreneurs.
• $150,000 in recurring funds to add two full-time positions in the Veterans Affairs Office. 

Editor’s note: This story has been updated to reflect the council’s final revenue appropriations after BridgeDetroit obtained updated documents Tuesday morning.