DETROIT – Detroit Mayor Mike Duggan struck an optimistic tone as he presented his final proposed budget and four-year financial plan to the Detroit City Council.
The mayor highlighted the city’s financial strength, attributing much of the positive outlook to strong income tax revenue performance.
“This city is in good shape,” Duggan said. “The reason we are financially so strong is our income tax revenue performance.”
Duggan’s proposed fiscal year 2026 budget totals $1.576 billion for general fund activities, with an additional $3.019 billion across all city funds.
Detroit homeowners would see a property tax cut under the mayor’s budget.
Duggan recommends a 3-mill reduction in property taxes.
“I say it’s good, but if you can do more than that, there’s nothing wrong with that,” said Detroit resident Bennett Osiah.
Property taxes in the city have already decreased by one mill each year from 2022 to 2024, the city said.
“Because we have been paying off our debt early, we are able to cut 3 mills off people’s property tax bills. So, if you’ve got a $100,000 house, that’s a $150 tax cut,” Duggan explained.
The proposed budget also focuses on improving Detroit’s bus service.
The Detroit Department of Transportation (DDOT) will receive $209 million, a $19.9 million increase from previous years.
This funding aims to improve paratransit services and increase the number of drivers.
“Buses are very important to a lot of people, you know, people got jobs. A lot of people don’t have cars. It is hard out here,” DDOT rider Toni Puczkowski said.
By early next year, the number of DDOT buses will increase from 178 to 220 a day, according to the city.
“Tell Mayor Duggan to tighten it up. He’s doing a good job,” added Danny Ford, another DDOT bus rider.
This marks the 12th consecutive balanced budget for Detroit since the city exited bankruptcy.
Mayor Duggan reflected on the city’s transformation over his tenure.
“The day of my first budget presentation, half the streetlights in the city were out, the parks were all closed, the ambulances didn’t show up for an hour, and there were 47,000 abandoned houses in the city. It was a city that didn’t have a lot of hope. It is a very different city today,” Duggan said.
The Detroit City Council will begin budget hearings for various departments starting on March 11, which will be open to the public.
The final budget is set to be adopted in April, with the new fiscal year beginning in July.
