For current info please visit detroitmi.gov
Mayor: Fiscal Year 2023 budget returns to pre-pandemic level, makes investments in beautification, transit and protecting retirees
Mayor: Fiscal Year 2023 budget returns to pre-pandemic level, makes investments in beautification, transit, and protecting retirees
- Mayor Mike Duggan delivered his Proposed FY2023 Budget and FY2023-2026 Four-Year Financial Plan to the Detroit City Council
- Economy and revenues continue to recover, but risks remain
- This fiscally responsible budget restores the pre-pandemic status quo and manages risks with contributions to reserve and spending restraint
- Budget adds significant deposit to the Retiree Protection Fund bringing total balance to $460 million to prepare for annual pension contributions resuming in FY2024
The City of Detroit’s budget has returned to its pre-pandemic level says Mayor Mike Duggan as he presented his proposed Fiscal Year 2023 Budget and FY23-26 Four-Year Plan to City Council today. City officials say revenue recovery has put Detroit back on track allowing the City to restore the pre-pandemic status quo budget and make important investments in key areas.
In April 2020, the Mayor outlined nearly $350 million in pandemic-related budget cuts to maintain a balanced budget without laying off any full-time City employees. Just two years later, the City has seen revenue growth beyond initial projections.
“I’m extremely proud of the work of our Chief Financial Officer and our department heads to have the discipline to still provide vital services within our available budget during the challenging past two years,” said Mayor Mike Duggan. “Their efforts have kept the City out of state financial oversight while making sure residents still could rely on City government during this pandemic. Now, we are in a position to again invest in our employees, retirees, and neighborhoods.”
The proposed budget totals over $2 billion, including over $1 billion for the General Fund, and makes targeted new investments to deliver opportunity, safety, and beauty for Detroiters, ensure fiscal stability and keep our promise to our retirees. Budget highlights include:
$90 million for the Retiree Protection Fund ($5 million recurring increase, $30 million one-time), brings total balance to $460 million for annual pension contributions that resume in FY2024
$30.7 million deposit into the Rainy-Day Fund, for a total balance of $138 million, plus $20 million in additional deposits planned after FY2023 to maintain reserve rate
$72.3 million in General Fund support for DDOT transit service and the People Mover, $5.8 million increase, on top of $26.5 million restorations, to improve Paratransit Service and Vehicle Operations
$17.5 million for Blight Remediation and Beautification Programs
$10.7 million for Parks and Recreation Improvements
$10.4 million per year for Public Safety, Parks, and General Vehicle Replacements
$2.7 million extra for the Charles H. Wright Museum of African American History
$1.5 million extra for the Detroit Historical Museum
$2.3 million for Coleman A. Young International Airport Improvements, plus $1 million increase in operations to implement Airport Layout Plan
“Recurring City revenues are forecasted to reach pre-pandemic levels due to stronger income tax collections and the implementation of internet gaming and sports betting last year,” said Chief Financial Officer, Jay Rising. “However, risks remain to the 4-Year Financial Plan from continued remote work, lingering pandemic effects, and legacy pension liabilities. This fiscally responsible proposed budget manages these risks with contributions to reserves and spending restraint,” said Rising.
City Council will hold Budget hearings for departments starting Monday, March 14 which are open to the public.
The Proposed Budget is for the Fiscal Year 2022-2023, which starts July 1, 2022, and ends June 30, 2023. It was informed by multiple rounds of Public Engagement, including the Annual Public Budget Meeting in October, Community Budget Priorities Forums held with each City Council District in January and February, and comments submitted to the [email protected] inbox.
For additional budget details, please visit detroitmi.gov/budget.
FY 2023 Mayor Proposed Budget Presentation 3-7-22.pdf
FY23 Budget One-Pager.pdf