• Mayor redoubles poverty reduction effort with ambitious commitment to ensure all full-time city employees are paid a livable wage

• Proposed FY 2027 budget also prioritizes funding that supports youth and seniors, centralizes household quality of life services and enhances transportation

• Proposed 13th consecutive balanced budget includes the City’s continued pension obligation payments in addition to $10 million in one-time supplemental check (13th check) for legacy pension retirees  

Detroit, MI – Guided by the vision to help every Detroiter rise higher, Mayor Mary Sheffield today returned to City Council chambers to present her first proposed fiscal year budget and four-year financial plan, a fiscally responsible roadmap that reflects her administration’s core priorities.

This 13th consecutive balanced budget totals $1.553 billion for General Fund activities and $3.047 billion across all City funds, reinforcing more than a decade of fiscal stability while aggressively targeting the Mayor’s Rise Higher core pillars for citywide growth.

“Returning to these chambers as Mayor to present this budget is a moment of profound responsibility and hope,” said Mayor Sheffield. “Our $3 billion budget is more than just a financial document; it is a commitment to the people of Detroit and a path forward to rise higher. By maintaining our 13-year streak of balanced budgets, we are proving that fiscal discipline and compassionate investment can—and must—go hand in hand,” said Mayor Sheffield.

City employees to rise higher as Sheffield’s proposed budget commits to living wage for ALL full-time employees
In a landmark move for the city’s workforce, Mayor Sheffield announced today that the City of Detroit will implement a new living wage standard for all full-time municipal employees. Effective July 1, 2026, this commitment ensures that every full-time public servant receives a minimum annual salary of $44,616, reinforcing the city's dedication to economic dignity and fair compensation.

"Today, Detroit isn't just talking about economic dignity—we are making it law. Through the issuance of an executive order, I am guaranteeing that every full-time public servant will earn the new Wayne County living wage of $21.45 an hour. We are making a conscious effort to invest in our employees who pour their hearts into Detroit every day and deserve financial stability,” said Mayor Sheffield.

Budget Foundation: Seven Pillars to Ensure Detroit Rises Higher
Foundational to the Mayor’s proposed budget are the Rise Higher seven pillars: Public Safety, Reliable Transportation, Neighborhood Restoration, Social Services, Affordable Housing & Homeownership, Economic Empowerment and Quality Education.

The Fiscal Year (FY) 2027[JW1.1] budget marks a historic shift in city priorities, directing unprecedented resources toward human services, neighborhood revitalization, and violence prevention while expanding essential programming for youth and seniors and enhancing transportation. Key highlights include:

• Human, Homeless and Family Services Department -$40 million 
  A newly created department. This new entity brings together human services, housing stability and homelessness response functions that were previously housed across multiple divisions and departments. This creates a coordinated, resident-centered human services safety-net system that centralizes access to critical programs for all Detroiters. Additional Department details:
  • Budget includes a 10% increase for a total of $9.3 million in funding for homelessness services
  • Creates of a simplified one-stop shop for quality of life and wraparound services, deploying a variety of supports ranging from homelessness to homeownership
  • Leads overall homelessness strategy redesign in partnership with service provider networks and Detroit residents
• Housing & Revitalization Department - $42.5 million 
  • An Executive Order expanding Affordable Housing Development and Preservation Trust Fund from 40% of City-owned commercial property sales to 100% which equates to $4 million for development and rehabilitation of housing for low-income residents in FY 27
  • A 50% increase in the Neighborhood Improvement Fund to $1.5 million
  • A pilot program using CDBG funds to expand Detroit’s homeownership capacity and infill housing options
  • $1 million for at-risk childhood at-risk home repair
• Investing in Small Businesses by prioritizing support for small and legacy businesses through:
  • $2.5 million in Motor City Match funding via the DEGC to support small businesses and expand entrepreneurship
  • $1 million for the Detroit Legacy Business Project to support small businesses operating in the City for over 30 years
  • New retail gap funding and small business emergency support programs
• Transportation Operations Budget - Historic DDOT Investment - $200 million
• A $30 million funding increase over the annual funding that supports:
  • Additional $23 million competitive wage increases and incentives
  • Additional $7 million for operations
  • $6/hour starting bus driver pay increase of $25/hr, competitive with SMART driver pay.
  • Improved repair and maintenance capacity
  • Improved quality of bus service and reliability for all riders
• Investing in our Families 
• The City’s budget dedicates $500,000 to maintain the RxKids partnership, which provides no strings attached direct cash assistance of $1,500 during pregnancy and $500 per month for a baby’s first six months.
  • Over $1 million of funds distributed to date
  •  A 120% increase to $2.2 million funding for after-school programming
• Dedicated Youth and Education Capacity
  • Newly proposed Senior Director of Youth and Education to oversee all youth and education strategies
  • New Education Liaison to the Mayor to build relationships between Mayor’s Office, DPSCD, and Charter Schools
  • New Office of Youth Affairs to center the voice of youth in all policies
  • Transportation pilot providing targeted ride-share services to Detroit students with chronic absenteeism
• Property Tax Relief
  Proposed budget includes a 1 mill debt reduction (from 4 to 3 mills) in the city's debt millage, a move that will provide immediate property tax relief to Detroit homeowners. Since 2022, homeowners have seen a 6-mill debt reduction. So, for a property worth $100,000, this equates to an estimated savings of $700 since 2023.
• “13th Check” for Legacy Pension Retirees 
  • Continued $10 million prorated check for legacy pension retirees
• Occupy the Summer Youth and Young Adult Programming Initiative will:
  • A dedicated Summer Violence Reduction collaborative
  • Extended hours in Recreation Centers
  • Return of Midnight Basketball Leagues
  • A $500,000 increase in funding for Grow Detroit’s Young Talent to a 
    total of $2.5 million
• The newly proposed Office of Neighborhood and Community Safety 
  $10.8 million in continued funding for Community Violence Intervention (CVI) programs
  • $1 million for continued Ceasefire program support
  • Adding a 3rd shift to provide 24-hour coverage to the City’s Mental Health Co-Response
  • $1 million for Public Lighting Authority (PLA) operating budget increase to fund Mid-Block Lighting Program which will add new streetlights to middle of neighborhood streets
  • $1 million for the Dead, Dangerous, and Diseased Tree Removal program
  • $1 million for the Neighborhood Beautification Grant program
• Office of Senior Affairs – A newly proposed office that will support:
  • Senior Housing Enforcement Initiative,[JW3.1] senior building improvements – directing Buildings, Safety Engineering, and Environmental Department (BSEED) to prioritize compliance and inspection efforts in senior buildings
  • New senior affordable housing groundbreaking recently (Greyston)
  • $750,000 for Senior Food Access program
  • $1 million for Senior Transportation funding (Accessibili-D)
• Sidewalk Repair
  • Reprioritize $8 million to clear backlog of sidewalk repairs citywide

"This proposed budget is a testament to the fiscal discipline we – the administration and City Council - have maintained over the last decade, allowing us to transition into a new era of growth under Mayor Sheffield’s leadership," said Chief Financial Officer Tanya Stoudemire. "By balancing our long-term sustainability with targeted investments in community safety and human services and economic opportunity, we are ensuring that Detroit’s financial foundation remains solid while providing the necessary resources for our residents to rise higher."

The Proposed Budget is for FY 2026-2027, which starts July 1, 2026, and ends June 30, 2027.  Several public meetings were held in advance, including the Annual Public Budget Meetings in October and the Community Budget Priorities Forums held with each City Council District in January of this year.
City Council will hold budget hearings for departments starting Wednesday, March 11, which are open to the public. The full hearings schedule and budget presentations are available at www.detroitmi.gov/budget.