The Detroit City Council recently finalized the city’s budget for the fiscal year 2024-25, setting it at $2.8 billion after incorporating $33 million in amendments to the initial proposal by Mayor Mike Duggan. This unanimous decision came after a series of departmental hearings that lasted about a month, followed by a week of intensive discussions focused on additional investments.
In a lengthy session that started at 11 a.m. and concluded just before midnight, the council also approved the pay schedule for city employees, outlined plans for the allocation of surplus funds, and requested that the mayor’s administration identify potential future funding sources for other priority areas.
A key component of the approved budget is the $1.4 billion General Fund, which is primarily supported by income tax revenues expected to be around $397 million. Other significant revenue sources include $257 million from casino taxes and $162 million from property taxes, with an additional $245 million coming from state revenue sharing.
The budget introduces a modest reduction in the property tax rate allocated for debt repayment, lowering it from 8 mills to 7 mills, while maintaining the 19.952-mill tax rate for city operations.
Highlighted investments in the budget encompass capital improvements for city facilities and parks, enhanced contributions to the retiree pension fund, a 13% budget increase for the Department of Transportation to support the hiring of additional bus drivers and provide higher wages, and increased funding for various services including trash collection, emergency shelters, and police and fire departments.
Among the capital projects benefiting from the budget adjustments are a $3.4 million allocation for the Charles H. Wright Museum of African American History, $1.2 million for the Detroit Zoo, $1.75 million for enhancements to Eastern Market, and $2 million dedicated to reopening the Monteith Branch of the public library.
The council’s efforts to fund various initiatives led to vigorous debates, especially regarding the reallocation of approximately 2% of the General Fund. While some council members had to scale back their funding requests, others, like Council Member Angela Whitfield-Calloway, successfully secured funding for projects.
The Detroit City Council allocated a substantial portion of the budget to capital ventures, with notable allocations including $3.4 million for the Charles H. Wright Museum of African American History, $1.2 million for enhancements at the Detroit Zoo (inclusive of insurance and a program for senior transportation), $1.75 million for improvements at Eastern Market along with an additional $250,000 to support Black-owned farms, and $2 million dedicated to reopening the Monteith Branch of the public library.
Initially, the City Council had considered redirecting $56 million of one-time expenditures towards various council-led projects. However, following advice from Mayor Duggan’s office, the council was persuaded to revise their plans, ultimately deciding on a $25 million reallocation for one-time funding. The cumulative adjustments to the budget, as confirmed by Irvin Corley from the council’s Legislative Policy Division, amounted to $33 million. It’s worth noting that the council used a spreadsheet to track these modifications and funding sources, though this document was not made public by Tuesday morning.
During the budget discussions, some council members had to scale back their original funding aspirations. For instance, Council Member Scott Benson reduced his request for electric vehicle charger funding from $2 million to $1.2 million. Council Member Latisha Johnson withdrew a $3 million appeal for emergency housing services in response to flooding, after learning that grant funding could be pursued instead. Council Member Coleman Young II was unable to secure sufficient support for a $80,580 allocation for a Legislative Policy Division historian, a role he argued would assist in correcting factual inaccuracies during complex discussions, such as those concerning the Israel-Hamas conflict. Young also retracted a $2.6 million funding request intended for the Detroit/Wayne County Port Authority to construct a new dock behind Zug Island, explaining that the project’s $10 million cost would be shared by the city, county, and state.
Despite these adjustments, some members, like Council Member Angela Whitfield-Calloway, were steadfast in their funding pursuits. Whitfield-Calloway successfully secured $2.5 million for the restoration of the Merrill Fountain at Palmer Park, even warding off a proposal to reduce this funding to $500,000.
The council managed to finance their priorities by reallocating funds from various sources, including surplus from the previous year, savings from unfilled positions, the risk management legal fund, and budgets earmarked for emergency demolitions, debt servicing, and the cleanup of blight across freeways, alleys, commercial zones, and land bank properties.
Additionally, each council member’s office budget was increased by $100,000, and $150,000 was allocated for their annual retreat.
The budget discussions were not without controversy, as disagreements arose over the legality of using General Fund dollars for specific projects, such as a lead safety program proposed by Whitfield-Calloway. Despite concerns from the Law Department about the constitutionality of such spending, the council decided to include funding for this and other initiatives, highlighting the complex balance between legal constraints and public welfare objectives.
The public had opportunities to provide input on the budget, with calls for greater transparency and accessibility in the budgeting process. Additionally, the significance of legal aid in preventing evictions was emphasized, leading to the inclusion of funding for the city’s Right to Counsel program in the budget.
The recently approved Detroit city budget, with its allocations and amendments, naturally raises questions about its tangible effects on the daily lives of Detroit residents. In a city renowned for its resilience and community spirit, how will these financial decisions translate into real-world improvements for the average Detroiter? From enhanced public services to the rejuvenation of public spaces, the allocations suggest a roadmap for urban development, but the critical inquiry remains: How will these changes be felt on the streets, in schools, and within homes? Will these investments lead to noticeable improvements in public safety, transportation, and local infrastructure, thereby uplifting the quality of life for its citizens?
Furthermore, with a significant portion of Detroit’s population being African American, there’s a pertinent discussion to be had about the specific impacts of the budget on Black Detroiters. How will initiatives like the increased investment in the Right to Counsel legal aid program and support for Black-owned farms, among others, address systemic inequalities and foster a more inclusive economic growth? Are there provisions within the budget that directly aim to enhance social, educational, and economic opportunities for Black communities in Detroit? Understanding the budget’s role in narrowing the racial disparity gap and promoting equity is crucial for ensuring that the benefits of Detroit’s fiscal strategies are equitably distributed among all its residents.
With this comprehensive budget in place, Detroit aims to address a wide array of city needs and priorities, underscoring the council’s commitment to thorough deliberation and public engagement in the municipal budgeting process.