Detroit Regional Chamber > Chamber > Detroit City Council Approves $2.6B Budget

Detroit City Council Approves $2.6B Budget

April 11, 2023

Detroit City Council approved Mayor Mike Duggan’s proposed $2.6 billion budget for the 2024 fiscal year on Monday. The approved balanced budget follows nine consecutive years of balanced budgets and puts Detroit one step away from Investment Grade status, which it has not had since 2009. Additionally, Detroit’s increase in credit rating proves that Detroit is a great place to have a business.

See below for key takeaways from the approved budget.

Detroit Free Press
April 10, 2023
Dana Afana

Detroit City Council, after several delays, approved Mayor Mike Duggan’s proposed $2.6 billion budget on Monday for the 2024 fiscal year, marking yet another balanced budget since exiting bankruptcy.

Councilmembers voted on several amendments to the budget, including where to reprogram American Rescue Plan Act dollars. The city will reallocate $59 million of federal funds to address more immediate projects, such as affordable housing. Duggan in a news media call last month told reporters that the city will not be able to spend certain funds by the required 2026 timeline.

The resolution calls for moving money out of funds for the digital divide, parks and recreation and small businesses into categories funding such things as neighborhood development, affordable housing, home repairs, and a Right to Counsel program.

“After thorough review, we determined that we wouldn’t be able to meet the ARPA spending timeline,” said Steve Watson, Detroit’s budget director.

A breakdown of reprogrammed ARPA funds:

$19 million to increase the amount for affordable housing purposes to $31 million.
$12 million to increase the Right to Counsel program to $18 million.
$1 million to establish the Tangled Title program under which the ownership of intergenerational properties transferred without clean title would be resolved.
$5 million to fund operations and development of senior citizen centers.
$2 million for a Home Accessibility program to provide home repairs and improvements for seniors and residents with disabilities.
$1 million for a Historical Sites and Facilities project under which historic sites and facilities will be improved and supported.
$9.5 million to establish the Detroit Neighborhood Development Support for economic and infrastructure needs of Detroit neighborhoods.
$9.5 million to increase funds for recreation center improvements to $39.5 million.

The budget includes a nearly $1.3 billion recurring general fund, which comes from income, property, utility users, wagering taxes and state revenue sharing.

Here are other key takeaways from the budget:

Over-assessed Homeowners

City Council passed a resolution providing remedies for homeowners who were overtaxed $600 million. Advocates have pushed for cash payments but the city’s legal department said the city could not use its general fund dollars as compensation.

Instead, the city will provide a variety of remedies:

Affected homeowners will receive up to $6 million in subsidies on sales of auction houses and lots under programs through the Detroit Land Bank Authority.
The Grow Detroit’s Young Talent job program will receive $12 million a year.
The Downpayment Assistance program will receive $6 million.
The Small Business Launcher Program will receive $6.25 million by the end of 2024.

Disabilities

Aside from programming ARPA funding for home repairs, the city is adding $200,000 to the health department to fund outreach for residents with disabilities and provide cultural competency training for health care providers. Council also pushed for spending $100,000 for an “accessible housing audit” to provide a review and assessment of any deficiencies in Detroit’s housing units that may limit mobility and accessibility for residents with disabilities.

Pay Increases for Bus Drivers

The Detroit Department of Transportation has dealt with driver shortages due to low wages. City Council is urging the administration to raise starting wages to $29 per hour for bus operators and provide raises for existing drivers through the department’s budget increase. DDOT is also receiving $7 million to increase the number of bus shelters across the city.

Museum Investments

The Charles H. Wright Museum of African American History and Detroit Historical Society sought more funding during budget hearings after Duggan proposed shifting money away from them, BridgeDetroit reports.

However, council allocated $2.7 million for the Charles H. Wright museum and $1 million to the Historical Museum operations and capital improvements.

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Detroit City Council Approves $2.6B Budget

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