Detroit’s journey towards equitable growth and community empowerment takes center stage as Mayor Mike Duggan rolled out a $2.7 billion budget for fiscal 2025 on Thursday. The budget proposal sets aside $1.46 billion for the general fund and totals $2.76 billion across all categories, covering both ongoing and one-time expenses for the fiscal year starting July 1 and ending June 30, 2025. Key investment areas are retirees, law enforcement, fire services, the Detroit Department of Transportation, initiatives to combat homelessness, and election-related activities. Mayor Duggan highlighted a significant achievement: a $200 million increase in the city’s income tax revenue over the past ten years.
“The budget I’m presenting today is the result of a $200 million growth in income tax we have earned together,” Duggan states, marking a significant milestone for the city. Yet, as we dissect this budget, critical questions emerge: Does this financial blueprint genuinely reflect the needs of Detroit’s underserved and Black communities? Are we witnessing a tangible commitment to uplift every corner of our city, or are we caught in the cycle of promises yet to materialize?
“We’re not in a situation because of some bailout. This is something we’ve earned ourselves,” Duggan remarks, highlighting Detroit’s resilience and self-made progress.
City Council will begin holding budget hearings for each department starting Monday.
Homelessness
Facing the harsh realities of homelessness, many Detroiters struggle daily to find a sense of stability and security. In response to these pressing needs, Mayor Duggan proposes an additional $5 million for the housing and revitalization department to enhance shelter services. This initiative acknowledges the city’s reliance on federal Housing and Urban Development grants for homelessness support, as Duggan notes, “We cover as much as we can.” The city has been actively engaging with those without homes to better understand their barriers to accessing shelters. With a recent increase of 300 beds in local shelters, Duggan’s commitment is clear. “With this extra $5 million, we’ll have the ability to reach everyone,” he asserts, aiming to ensure that every unsheltered Detroiter finds a roof over their head.
Although Duggan’s stance sounds good, Council President Mary Sheffield expressed concerns that contradict the optimistic outlook on shelter availability, stating, “People do not have places to be housed, it’s a real issue. 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.” Highlighting a gap between policy and reality, Sheffield’s words underscore the real urgency of expanding shelter capacity in Detroit.
Retirees
Many Detroiters, who have spent their lives serving the community as first responders or working tirelessly in the plants, now face their golden years with understandable concern about their pensions. In the wake of Detroit’s bankruptcy, a crucial plan of adjustment was put in place, pausing pension fund payments for a decade. As this hiatus ends, the city is stepping up with a $150 million annual contribution. Mayor Duggan reflects on the initial skepticism, “The general belief was when 2024 rolled around, the city would break their promises. But when the income tax started to grow … we didn’t say we’re going to wait.”
To further bolster this commitment, Detroit has earmarked $455 million in a Retiree Protection Fund over the past ten years, ensuring pensions don’t strain the city’s budget. In a move signaling deeper dedication, Duggan proposes increasing the 2025 contribution to $170 million, acknowledging the tough decisions this necessitates across departments. “The fact that we are committing $170 million to retirees and pensions means you have to have difficult conversations in other departments,” he admits.
An additional $20 million aims to accelerate pension fund stability, adopting a strategy of front-loading payments for long-term benefit. Budget Director Steve Watson explains, “By putting in more money upfront, we’ll have a healthier pension plan,” highlighting the proactive approach to safeguarding retiree incomes.
Moreover, Duggan seeks to provide immediate relief with a $10 million allocation for a one-time supplemental bonus, known colloquially as the “13th check.” Councilman Fred Durhal III, echoing the sentiment, says, “It’s a start, letting them know the city is taking lead to provide some relief to our retirees.”
First Responders
The narrative extends to public safety, with Duggan proposing an 11-officer increase to tackle mental health cases and a $15 million initiative to curb crime during the summer. The Fire Department is set for a 12% budget hike, aiming to revolutionize emergency responses. Yet, amidst these figures and percentages, the essential question lingers: Will these enhancements reach the heart of our underserved communities, ensuring safety, security, and well-being for all Detroiters?
Detroit’s approach to enhancing police and fire services under Mayor Duggan’s proposed budget shines as a beacon of hope yet raises important questions about genuine implementation and impact. Touting noteworthy reductions in homicides and nonfatal shootings, Duggan proposes expanding Detroit Police Department, adding 11 officers to address mental health and earmarking about $15 million to combat crime during summer surges and cover overtime.
“Police and fire enhancement is crucial,” Duggan said, proposing a 12% increase for the Fire Department. He acknowledges the need for improved emergency responses, “I’m not sure there’s an area we could improve more on than our ambulance and medical responses.” The city’s commitment to cross-training emergency personnel aims to ensure comprehensive patient care.
For fire suppression and emergency medical services, an $8 million boost is planned, alongside $3 million for overtime to support new recruits. With the number of ambulances nearly doubling from the previous year, and emergency response times meeting national standards, the question remains: Will these enhancements effectively reach and uplift Detroit’s most vulnerable communities?
DDOT
For many Detroiters, DDOT isn’t just a bus service; it’s a lifeline that connects them to crucial aspects of their daily lives, from making it to doctor’s appointments and picking up groceries to getting to work and school or caring for loved ones. Recognizing this essential role, there’s a proposed 13% boost in DDOT’s budget, aiming to bring on board 117 more bus drivers and push the total number of drivers to 627. This increase means an additional $21.6 million, bringing DDOT’s total budget to $189 million—a fund pieced together by city taxes, state and federal contributions, and the fares people pay.
In a move to ensure the reliability and quality of this indispensable service, Mayor Duggan has put forward raises for DDOT drivers earlier this year, aiming to keep experienced hands on the wheel and ensure that Detroiters can count on a ride when they need it the most.
Election Department
In an electoral context, Duggan is adamant about breaking barriers to voting, proposing a 40% increase for the Election Department. “There isn’t going to be one Election Day on Nov 5. We’re going to have polls open 14 days in a row before the election,” he states, committing $4 million to bolster presidential cycle turnout and Proposal 2 implementation. This move sparks a dialogue on ensuring electoral processes truly reflect and serve Detroit’s diverse populace.
General Fund
The general fund’s growth by $141 million from the previous year encompasses a blend of recurring and one-time expenditures, with significant allocations towards public safety, infrastructure, and community development. Noteworthy is the $103 million increase in recurring expenditures, including $28 million for salary and benefits growth across departments and $26 million for debt service and legacy pensions, hinting at a long-term strategy for financial stability and workforce satisfaction.
Duggan’s detailed breakdown of $101 million in one-time spending, supported by last year’s surplus, includes capital improvements, cleanup initiatives, demolition of blighted properties, and police overtime for enhanced patrol and surge coverage. Moreover, $10 million is set aside for a one-time supplemental benefit for legacy retirees, underscoring a commitment to those who have served Detroit.
As Detroiters ponder the $4.5 million for Motor City Match and Grow Detroit’s Young Talent, along with investments in affordable housing, the underlying question is how these allocations will translate into tangible improvements in the lives of Detroit’s underserved and Black communities.
Council Feedback
Council President Pro Tem James Tate is championing the continuation of a vital $8 million initiative aimed at aiding homeowners with the removal of hazardous trees, a program that debuted last year through one-time funding. Mayor Duggan acknowledged the program’s unexpected popularity, expressing his willingness to explore sustainable financing options, “It’s been far more popular than I had anticipated.”
Council Member Gabriela Santiago-Romero advocated for diverting funds to secure occupied homes slated for demolition, presenting an alternative approach to maintaining community structures. Furthermore, she proposed enhancing City Council staff salaries to retain talent, highlighting the importance of competitive compensation in sustaining a skilled workforce.
Santiago-Romero also questioned the allocation of $15 million for the demolition of blighted properties, suggesting that federal pandemic aid and Proposal N bond funding could be utilized instead. In response, Mayor Duggan clarified the scope of Proposal N and the necessity of additional funds to address properties outside its purview, emphasizing the community’s need for safety regardless of property ownership, “If you live next door to an abandoned house and you’re afraid it’s gonna catch fire and spread to your house, you don’t care whether it’s in land bank ownership or private ownership, you want it down and secure.”
Council Member Latisha Johnson raised concerns over the tangible outcomes of a $200,000 allocation from the previous budget designated for air purifiers near Stellantis’ east side auto plants, indicating a gap in project execution and community impact. Johnson also emphasized the need for additional shelter beds in District 4, pointing to a localized demand for increased support for the homeless.
Council Member Scott Benson expressed satisfaction with the sustained budget increases for the Charles H. Wright Museum of African American History and the Detroit Historical Museum, acknowledging the importance of continued support for these cultural institutions in the upcoming budget.
As Detroit’s budget season unfolds, one critical question looms large: Are we genuinely prioritizing the advancement of everyday Detroiters in our financial planning? How does each budget decision directly contribute to enhancing the quality of life for the city’s residents, particularly those in historically underserved communities?
It’s more than just numbers and spreadsheets—it’s about making real changes that folks in our neighborhoods can see and feel. This time of year is crucial because it’s when we decide how to spread the city’s funds in ways that lift up our communities. Whether it’s making sure there are enough shelters for those in need, keeping our streets safe, or taking down dangerous buildings, each dollar spent is a step toward building a better Detroit. It’s all about coming together to make sure our city is a place where everyone has a shot at a good life, tackling the everyday challenges head-on. This is our chance to shape a Detroit that truly reflects the strength and spirit of its people.
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