Detroit City Council Rewrites $3B Budget to Prioritize Housing, Transit, and Community Needs

April 8, 2025

The Detroit City Council recently passed a $3 billion budget for 2025-26, revising roughly $36 million of Mayor Mike Duggan's initial proposal to better align with residents' needs across areas including affordable housing, youth employment, senior transit, and small business equity. This marks the 12th consecutive balanced budget since Detroit's 2014 bankruptcy exit and is Duggan's final budget as mayor, with his veto deadline set for April 11. Detroit's financial structure relies on four main revenue sources: $432 million from income tax, $292 million from casino wagering taxes, $174 million in property taxes, and $253 million in state revenue sharing.

Who is affected

Detroit residents, particularly those needing affordable housing, public transportation, and youth employment
Senior citizens requiring transportation services
Small businesses and entrepreneurs (through programs like the Legacy Business Program)
Communities served by DDOT public transportation
Visitors and users of public facilities (Detroit Historical Museum, Charles H. Wright Museum, parks)
Homeowners needing repairs
Those experiencing homelessness
The city's 11,363-person workforce (including 216 new full-time positions)

What action is being taken

The Council is reallocating $5 million in unspent American Rescue Plan Act funding toward homelessness services
DDOT is receiving an additional $2 million to fund 100 accessible bus shelters and hire new drivers
The Charles H. Wright Museum is receiving $2 million in capital support and $700,000 in operations funding
$2 million in one-time home repair funding is being provided
$5 million is being removed from the Detroit Land Bank Authority's city subsidy
$1 million is being restored for eviction prevention resources
$500,000 is being allocated for a voter education campaign

Why it matters

This budget directly addresses Detroit residents' everyday needs and represents a shift in priorities toward neighborhood-focused initiatives. It maintains Detroit's financial stability (the 12th consecutive balanced budget) while redirecting resources toward essential services like housing, transit, and community support. The budget also signifies a transition in leadership as it's Mayor Duggan's final budget and some Council members, including Budget Chair Fred Durhal III and Council President Mary Sheffield, are running for mayor. Additionally, it represents the first time the administration has handed over control of a lump sum of federal funding ($9.4 million in ARPA funds) to the legislative body.

What's next

No explicit next steps stated in the article

Read full article from source: Michigan Chronicle