Mayor: Fiscal Year 2026 budget caps roadmap to financial and economic recovery with 12th balanced budget, significant investment and growth creating safer, more vibrant and sustainable City for Detroiters

• Mayor Duggan delivers his last fiscal year budget and four-year financial plan to Detroit City Council, marking 12th consecutive balanced budget
• Budget includes a historic 3 mill reduction in debt millage, reducing property taxes for Detroiters
• Mayor’s last proposed budget leaves nearly $500 million in reserves including $348 million in Retiree Protection Fund, $150 million in Rainy Day Fund
• Promise to retirees are kept as budget includes a second year of one-time supplemental retirement checks (13th check)
• The 12th balanced budget prioritizes quality of life services for Detroiters, including a $20 million budget increase for DDOT, 40% increase in funding for homelessness prevention

Mayor Mike Duggan has presented his last proposed fiscal year budget and four-year financial plan to City Council today. This marks the 12th balanced budget for Detroit since exiting bankruptcy and caps a remarkable journey to economic and financial recovery that includes significant investment and revenue growth creating a safer, more vibrant and sustainable City for its residents.

Because of the City’s growth and investment over the years, Mayor Duggan announced that the City would be reducing its debt millage by 3 mills, a historic move that will provide property tax relief for Detroit homeowners. For example, a homeowner with a $100,000 valued home would save $150 in property taxes with a 3-mill reduction.

The proposed budget supports our highest priorities including additional funding for preventing homelessness and investing more in DDOT and community violence prevention work, all of which contribute to a more vibrant, safe, and sustainable city for residents.

This 12th consecutive balanced budget totals $1.576 billion for General Fund activities and $3.02 billion across all City funds for the coming fiscal year beginning July 1, 2025. It builds on the Mayor and the City Council’s continued collaboration to set a fiscally sustainable course for Detroit.

Economic roadmap to Recovery

Following Detroit’s emergence from bankruptcy, the Administration, working in partnership with City Council, employed strategies that have spurred growth in the economy resulting in a growing tax base, additional economic opportunities and development, good-paying jobs, and overall improvements in the quality of life for Detroiters. The City began its path to recovery by investing billions of dollars in restoring public services, making capital investments, and addressing blight.

Additionally, Detroit has far exceeded the bankruptcy Plan of Adjustment (POA) 2014 projections:

With steady revenue growth over the years and revenue recovery from the pandemic, the City has returned to a normal budget process with stable growth and a commitment to making prudent spending decisions. The FY26 proposed budget is balanced, despite pressure to keep up with current services and competitive wages.

Keeping promises at heart of 12th balanced budget

The Mayor and City Council have built up nearly $500 million in financial reserves, including the $348 million remaining in the Retiree Protection Fund and $150 million in the Rainy Day Fund, ensuring the City takes care of its retirees without risk to the budget. Through this budget, promises are kept to retirees with a third ongoing pension payment to the City’s retirees while also allocating $10 million for a one-time supplemental retirement check for the second consecutive year.

The budget also proposes $209 million for the Detroit Department of Transportation (DDOT), representing a $19.9 million increase. The increase provides additional funding for paratransit and brings the total number of drivers to 690, that’s 63 more drivers than the previous budget. DDOT is supported by a combination of City tax support, state and federal funds, and fare revenue.  

Overall, the General Fund budget grows by $102 million over last year's budget, including a $93 million increase in recurring expenditures and a $9 million increase in one-time expenditures. The recurring budget growth represents continuation of current services and more past promises kept, including:

• $19.9 million contribution increase to DDOT operations
• $14.1 million for Police public safety current services support
• $2.0 million for Grow Detroit’s Young Talent

This proposed budget also includes $69 million in one-time investments, across all funds, supported by the previous year’s surplus and one-time revenues including:

• $30.0 million for Risk Management Fund
• $14.0 million for freeway cleanup, alleys, and commercial corridors
• $4.4 million for continuation of Community Violence Intervention
• $3.0 million for Fire/EMS overtime to support new recruit transition
• $2.5 million for Motor City Match

“My final proposed budget I’m presenting today leaves Detroit in a fiscally healthy place and a promising future, with over $450 million in income tax revenue and reserves at nearly $500 million,” said Mayor Mike Duggan. “The reason we are at this point in our finances is because the mayor and City Council have stood together unified since 2014.”

"The FY26 budget is a direct result of the hard work and partnership between the administration and City Council over the last 12 years. Detroit today is fiscally stronger than it was in 2014 and ultimately, residents and neighborhoods are the true beneficiaries because of improved City services, job-creating economic development, and a growing tax base,” said Chief Financial Officer, Jay Rising.

City Council will hold Budget hearings for departments starting on March 11, 2025 which are open to the public. Additional details are available at detroitmi.gov/budget.

The Proposed Budget is for Fiscal Year 2025-2026, which starts July 1, 2025, and ends June 30, 2026. It was informed by multiple rounds of Public Engagement, including the Annual Public Budget Meetings in October, Community Budget Priorities Forums held with each City Council District in October and November and comments submitted to the [email protected] inbox.

FY 2026 Mayor's Recommended Budget Presentation to City Council