Detroit Mayor Mike Duggan’s 2025 budget proposal includes a slight property tax cut and larger investments in bus drivers, blight cleanup, police patrols, streetlights and retirement benefits for city employees.

Duggan and his financial officers presented their vision for the $2.76 billion budget to the City Council on Thursday. Duggan described it as a “status quo” budget but said the city’s spending power continues to steadily increase, in part thanks to income tax revenues that grew by $200 million in the last decade. Overall revenue is up by $75 million from last year, allowing for key investments in city departments and services, he said. 

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“We are not in this situation because of some bailout, this is something we earned ourselves,” said Duggan, noting that the city is using its $827 million federal pandemic aid for investments instead of plugging budget deficits.

Revenue increases from growth in the property tax base also allow Detroit to reduce a property tax used to pay off debt from 8 mills to 7 mills. Duggan said he expects to cut the debt millage again next year. 

“That’s what happens when property values go up, everybody has to pay less to pay off the debt,” Duggan said. 

Thursday’s presentation kicks off a month of budget hearings for city departments and suggested changes by the City Council culminating with a vote to authorize the final budget by April. 8. The new fiscal year starts July 1. 

The proposal calls for $141 million in additional spending, which includes a $38 million increase in one-time expenditures. 

The mayor proposed substantial budget increases in six areas. 

• The Department of Transportation (DDOT) would receive $21.6 million to add 117 more bus drivers and increase the deployment of buses on the street. 
• Pension funding would increase by $40 million, plus $10 million for one-time supplemental retirement checks and another $10 million to boost retirement benefits for active city employees. 
• The Police Department would receive $18.6 million to add more officers, cover overtime payments and summer “surge” staffing as well as a new Transit Police division to patrol DDOT buses. 
• The Fire Department would receive an $8 million increase for emergency ambulance contracts and $3 million for overtime to support new recruits. 
• The Housing and Revitalization Department would receive $5 million to provide services for Detroiters experiencing homelessness, including 300-400 shelter beds. 
• A $4 million increase for the Department of Elections to administer Michigan’s new early-voting system. 

Duggan also highlighted other one-time investments including $20 million for capital improvements; $17.5 million to clean up freeways, alleys, commercial corridors and land bank properties; $15 million to demolish blighted properties and $2.8 million for the Affordable Housing Development and Preservation Fund. The budget includes $1 million in additional funds for the Public Lighting Authority to repair street lights and respond to outages.

Duggan said youth who are engaged through Detroit’s community violence intervention program will be able to apply for Motor City Match funds to start businesses. 

State funding could help continue the program, which launched last summer through $10 million in federal pandemic funds. Duggan pointed to a bill that passed the Michigan House last year that would distribute public safety funding to cities based on violent crime rates. Duggan said he’s meeting with state senators to advocate for the bill. 

Council Member Fred Durhal III, who chairs the council’s budget committee, said he’s glad to see the city meeting its pension obligations. 

“I think we are in the right direction when we talk about fiscal stability and self-determination for our city and that has a lot to do with the work that you as well as your team,” Durhal said to the mayor.

Other council members largely responded positively to the mayor’s budget proposal, but had questions about spending priorities. 

Council President Mary Sheffield said she wants to hear from the Detroit Water and Sewerage Department about spending on mold remediation and basement backup protection programs. She also pressed Duggan to fund additional shelters for unhoused Detroiters, disagreeing with the mayor’s assertion that shelter beds are available. 

“In the last three months we have brought online three or four sites with more than 300 shelter beds,” Duggan said. “There is a shelter bed for anybody who wants one. There are individuals, whether it’s an addiction issue, a mental health issue or personal preference, who don’t want to go to the shelter.” 

Sheffield said she hears a different story from Detroiters who have not been able to find shelter. 

“People do not have places to be housed, it’s a real issue,” Sheffield said. “I know you’re saying it may not be but it really is. I’m hoping we can find a way to increase the amount of housing in shelters.” 

Council President Pro Tem James Tate advocated for continuing funding for an $8 million program to help homeowners remove diseased and dangerous trees on their property. The program  lauched last year with one-time funds. Duggan said it’s been “far more popular than I had anticipated” and is open to finding long-term funding. 

Council Member Latisha Johnson said she hasn’t seen the result of $200,000 included in last year’s budget to install air purifiers in residences around Stellantis’ east side auto plants. Johnson also said there should be more shelter beds in District 4. 

Council Member Gabriela Santiago-Romero said she’d like to see funding go toward stabilizing occupied homes that are in the demolition pipeline to prevent them from being torn down. She also suggested raising salaries for City Council staff to retain talented employees. 

Santiago-Romero questioned why the city would spend $15 million to demolish blighted properties when there is federal pandemic aid and Proposal N bond funding available. Duggan said significant progress has been made toward demolishing properties owned by the Detroit Land Bank Authority, and Proposal N bonds can’t be used to demolish private property. 

“If you live next door to an abandoned house and you’re afraid it’s gonna catch fire and spread your house, you don’t care whether it’s in land bank ownership or private ownership, you want it down and secure,” Duggan said. “This is for the money that wasn’t covered in Proposal N to make sure that we finish the job.”

Council Member Scott Benson said he was glad to see that funding increases secured in last year’s budget for the Charles H. Wright Museum of African American History and the Detroit Historical Museum will continue in the next budget. 

Budget hearings are scheduled to start March 11, with multiple departments appearing before council committees on Mondays and Wednesdays through Fridays throughout the month.