Detroit’s financial recovery has reached another milestone with the city’s twelfth balanced budget since emerging from bankruptcy, but questions remain about the depth of its impact on the communities that need it most. Mayor Mike Duggan’s proposed $3 billion budget for the upcoming fiscal year includes a 3-mill property tax cut, an 8.7% increase in overall spending, and targeted investments in public transit, homelessness services, and community violence intervention. But as the mayor touts Detroit’s fiscal health, many residents are asking: What does this budget mean for them?
Duggan told City Council that the proposed property tax cut would amount to a $150 reduction for a homeowner with a $100,000 property. “The first thing Detroiters are going to see is a big property tax cut, and I think this is going to be good news for Detroiters,” he said. But for a city still dealing with the fallout from systemic overtaxation and economic displacement, a reduction of this scale is unlikely to be a game-changer. Between 2010 and 2016, Detroit overtaxed its residents by at least $600 million due to inflated property assessments following the Great Recession. In response, the administration and City Council allocated $4 million to help over-assessed homeowners seek relief, but many argue that it barely scratches the surface of what’s needed to address the long-term harm inflicted on Black homeowners in particular.
The mayor’s budget also calls for an increase in funding for homelessness services, boosting the general fund contribution from $6 million to $8.4 million. This proposal comes in the wake of a devastating tragedy in which two children died while sheltering in a van with their mother inside a Greektown parking garage during freezing temperatures. Duggan has pledged to “fix” the city’s approach to homelessness, doubling the number of immediate shelter beds and expanding outreach efforts. But Detroit’s unhoused residents have long been calling for systemic changes that go beyond temporary shelter, demanding permanent housing solutions, better mental health services, and protections against eviction.
Duggan’s budget blueprint also includes a $20 million increase for the Detroit Department of Transportation (DDOT), raising its total budget from $190 million to $210 million. The mayor highlighted the city’s purchase of 45 new buses, expected to begin arriving in late summer. Decades of disinvestment in public transportation have disproportionately impacted Detroit’s majority-Black population, making commutes longer and job access more difficult. With only a fraction of city residents able to rely on reliable transit options, the effectiveness of this funding increase will depend on whether it translates into tangible improvements in service quality, route accessibility, and overall reliability for those who need it most.
The budget also allocates $4.4 million to sustain the Community Violence Intervention (CVI) program, an initiative that has relied on American Rescue Plan funding but is now awaiting permanent state support. This program uses evidence-based strategies to disrupt cycles of violence by working directly with those most affected. Detroit is still awaiting legislative approval for annual state funding for this effort, but without sustained investment, many worry about the program’s longevity and impact.
While Duggan asserts that the proposed property tax cut “doesn’t affect” city operations—stating that the savings stem from debt payments being fulfilled—residents remain cautious. Budget decisions over the last decade have significantly shaped Detroit’s economic trajectory, but they have not necessarily translated into widespread prosperity. The city’s financial growth, as reflected in income tax revenue surpassing bankruptcy-era projections, is clear on paper. Duggan’s administration boasts a $1.2 billion fund balance, including $150 million in a Rainy Day Fund, and emphasizes that income tax revenue has grown at an annualized rate of 5%—far exceeding the projected 2%. Property values have risen 94% since bankruptcy, in stark contrast to the expected decline of 1.7% annually. These figures paint a picture of recovery, but the lived experience of many Detroiters tells a different story.
Beyond the numbers, neighborhoods outside of downtown have seen notable improvements. Urban agriculture has taken root, with initiatives like the Michigan Urban Farming Initiative (MUFI) and Keep Growing Detroit transforming vacant lots into productive farms that provide fresh food and community engagement. Hantz Woodlands has revitalized over 2,000 vacant lots on Detroit’s east side, planting 25,000 trees and boosting property values.
Infrastructure investments have also made an impact. Detroit replaced 65,000 outdated high-pressure sodium streetlights with LED lighting, improving safety and visibility across neighborhoods. The Detroit Demolition Program has removed over 17,000 abandoned structures, reducing crime rates and increasing nearby property values.
Neighborhood revitalization efforts have taken shape in areas like New Center, where Henry Ford Health System’s $500 million investment has spurred development, and Corktown, where Ford Motor Company is restoring Michigan Central Station into a hub for innovation. The Livernois-6 Mile corridor has seen building renovations, improved streetscapes, and greenway expansions, attracting new businesses and residents.
Affordable housing remains a priority, with $1 billion invested in the past five years and another $1 billion planned. Policies mandating affordable units in new developments have sought to prevent displacement. Additionally, Detroit has launched a major initiative to replace lead water service lines, aiming to replace 8,000 annually to ensure safe drinking water.
These developments show visible progress, but are they enough to meet the daily needs of Detroiters? A city cannot measure success solely by balance sheets and property values. Residents need to feel these investments in their everyday lives—when they step onto a reliable bus to get to work, when they can afford to keep their home without the looming threat of property tax hikes, when they know their neighborhoods are safe and thriving. Do these improvements translate to relief at the kitchen table, where families discuss whether they can afford groceries, rent, or medical bills? Are Detroiters truly reaping the benefits of these investments, or are they being left to celebrate financial milestones that do not directly impact their quality of life?
Duggan’s proposed budget maintains $455 million in retirement reserves, ensuring that the city will make its scheduled pension payments for the third consecutive year. It also sets aside $10 million for a one-time supplemental retirement check for retirees. While these measures prioritize financial commitments to former city employees, they do little to address the broader economic disparities still facing working Detroiters today.
One of the most contentious aspects of Duggan’s fiscal approach has been his push for tax reforms aimed at alleviating Detroit’s high property tax burden. His 2023 Land Value Tax Plan sought to reduce taxes for 97% of homeowners while doubling rates for owners of vacant or neglected land. That plan ultimately stalled, requiring approval from both the state legislature and city voters. Without substantive tax reform, Detroiters continue to face some of the highest property tax rates in the nation, deepening economic inequities in a city where Black homeownership has steadily declined.
As Duggan prepares to leave office, his administration highlights that Detroit’s financial reserves now exceed $500 million, including $348 million in the Retiree Protection Fund and $150 million in the Rainy Day Fund. “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,” Duggan said. Chief Financial Officer Jay Rising echoed this sentiment, stating, “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.”
City Council will hold budget hearings starting March 11. Many in the community will be watching closely to see whether these numbers translate into real improvements in their daily lives. The proposed budget was shaped by public engagement, but engagement alone is not enough. Detroiters need to see action that prioritizes the people who have stayed, fought, and built this city through its toughest times.
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