Detroit, Michigan – With Detroit Mayor Mike Duggan presenting his last budget proposal to the City Council, the city marks a major turning point as it boasts 12th straight balanced budget since its bankruptcy. Aimed at creating a safer, more exciting, and sustainable Detroit, its current budget sets a strong plan for fiscal year 2026.
Including $1.576 billion for General Fund operations and $3.02 billion overall across all city finances, the FY 2026 budget shows a remarkable path of financial stability and economic rebirth. The budget additionally includes a major tax relief measure, lowering the debt millage by 3Â mills, therefore saving $150,000 on property taxes for households whose properties value $100,000.
Mayor Duggan emphasized Detroit’s path of recovery, pointing up the significant increase in income and property values despite bankruptcy estimates. For example, the income tax receipts for the city have increased by 5% annually, reaching $465.5 million for FY26, somewhat in contrast to the meager 2% increase expected under the 2014 bankruptcy Plan of Adjustment. Property values, which were expected to decline annually, have surged by 94% instead.
The suggested budget supports important areas including community violence response, homelessness prevention, and Detroit Department of Transportation (DDOT) improvement. Reflecting a rise in the city’s capability and commitment to public transportation, the latter component will see a $19.9 million boost in its budget allowing for an expansion in paratransit services and an increase in the number of drivers to 690.
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Financial resilience is a central theme of this budget, with the city having built up nearly $500 million in financial reserves. This covers the Rainy Day Fund at $150 million and the Retiree Protection Fund at $348 million. These reserves guarantee Detroit’s ability to keep fulfilling its responsibilities to retirees, including a one-time supplemental retirement check for the second year in a row and a third consecutive annual pension payment.
Apart from regular expenses, the budget suggests $69 million in one-time funding for several projects including risk management, highway clean-up, and community violence reduction programs. The surplus from last year and one-time earnings help to sustain these expenditures, therefore underscoring the city’s strategic approach to budgeting.
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Mayor Duggan expressed satisfaction in Detroit’s financial situation and future possibilities, crediting the accomplishment to the combined work of the mayor’s office and the City Council since 2014. Jay Rising, the Chief Financial Officer, echoed this sentiment, stressing that Detroit is stronger than it was ten years ago because of the better city services, economic development, and widening tax base directly benefiting residents and neighborhoods.
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As the city prepares for the upcoming fiscal year starting July 1, 2025, the Detroit City Council will begin budget hearings on March 11, which are open to the public. This process not only reflects the city’s commitment to transparency but also its dedication to engaging with the community to refine and improve the proposed fiscal plans.
FY 2026 Mayor’s Recommended Budget Presentation to City Council