Detroit Rises Higher: Mayor Mary Sheffield presents first proposed budget, keeps promises to prioritize human services, neighborhoods, public safety

• Mayor redoubles poverty reduction effort with ambitious commitment to ensure all full-time city employees are paid a livable wage
• Mayor Sheffield's Proposed FY 2027 budget also prioritizes funding that supports youth and senior services and enhances transportation
• Proposed 13th consecutive balanced budget also includes the City's continued pension obligation payments in addition to $10 million in one-time supplemental check (13th check) for legacy pension retirees

Guided by the vision to help every Detroiter rise higher, Mayor Mary Sheffield today returned to City Council chambers to present her first proposed fiscal year budget and four-year financial plan, a fiscally responsible roadmap that reflects her administration's core priorities.

This 13th consecutive balanced budget totals $1.553 billion for General Fund activities and across all City funds the total is $3.047 billion, reinforcing more than a decade of fiscal stability while aggressively targeting the Mayor's Rise Higher core pillars for growth in the City.

"Returning to these chambers as Mayor to present this budget is a moment of profound responsibility and hope," said Mayor Sheffield. "Our $3 billion budget is more than just a financial document; it is a commitment to the people of the City of Detroit and a way forward to rise higher. Also, by maintaining our 13-year streak of balanced budgets, we are proving that fiscal discipline and compassionate investment can-and must-go hand in hand," said Mayor Sheffield.

City employees to rise higher as Sheffield's proposed budget commits to living wage for ALL full-time employees

In a landmark move for the city's workforce, Mayor Sheffield announced today that the City of Detroit will implement a new living wage standard for all full-time municipal employees. Effective July 1, 2026, this commitment ensures that every full-time public servant receives a minimum annual salary of $44,616, reinforcing the city's dedication to economic dignity and fair compensation.

"Today, Detroit isn't just talking about economic dignity-we are codifying it into our city's future. By ensuring every full-time public servant earns a living wage of at least $44,616, we are honoring our employees who pour their hearts into Detroit every day and providing a way for them to rise higher," said Mayor Sheffield.

Budget foundation: Seven Pillars to ensure Detroit rises higher.

Foundational to the Mayor's proposed budget are the Rise Higher seven pillars: Public Safety, Reliable Transportation, Neighborhood Restoration, Social Services, Affordable Housing & Homeownership, Economic Empowerment and Quality Education.

As a result, the FY 2027 budget marks a historic shift in city priorities, directing unprecedented resources toward human services, neighborhood revitalization, and violence prevention while expanding essential programming for youth and seniors and enhancing transportation. Some highlights include:

• $40 million to the newly created Human, Homeless and Family Services Department brings together human services and homelessness response functions that were previously housed across multiple divisions, creating a more coordinated, resident-centered system.
  • A 10% increase for a total of $9.3 million in funding for homelessness services
  • It's a one-stop shop for quality of life and wraparound services.
  • Creates a singular focus on homelessness strategy
  • Creates a service continuum from homelessness to homeownership
• Housing & Revitalization Department $42.5 million will facilitate housing development as a primary objective through:
  • An Executive Order expanding Affordable Housing Development and Preservation Fund from 40% of City-owned commercial property sales to 100% which equates to $4 million for development and rehabilitation of housing for low-income residents
  • A 50% increase in the Neighborhood Improvement Fund to $1.5 million.
  • Utilizing a portion of CDBG funds to create a pilot program for infill housing options
  • $1 million to fund childhood at-risk home repair
• Investing in Small Businesses by prioritizing support for small and legacy businesses through:
  • $2.5 million in Motor City Match funding via the DEGC to support small businesses and expand entrepreneurship.
  • $1 million in funding for the Detroit Legacy Business Project to support small businesses that have operated in the City for over 30 years.
• Historic DDOT Investment: DDOT has a historic $220 million Transportation Operations Budget, a $30 million funding increase over the annual funding that supports:
  • Additional $24 million competitive wage increases and incentives.
  • Additional $6 million for operations.
  • $6/hour starting bus driver pay increase of $25/hr, competitive with SMART driver pay.
  • Improved repair and maintenance capacity.
  • Improved quality of bus service and reliability for all riders.
• Investing in our Families by continuing commitment to RxKids Program. City's budget dedicates $500,000 in funding to maintain the RxKids partnership. [link]
  • Provides no strings attached direct cash assistance of $1,500 during pregnancy and $500 per month for Baby's first six months.
  • A 120% increase to $2.2 million funding for after-school programming.
• Dedicated Youth and Education Capacity
  • Newly proposed Senior Director of Youth and Education to oversee all youth and education strategies
  • New Education Liaison to the Mayor to build relationships between Mayor's Office, DPSCD, and Charter Schools
  • New Office of Youth Affairs to center the voice of youth in all policies
  • Transportation pilot providing targeted ride-share services to Detroit students with chronic absenteeism
  • A 120% increase to $2.2 million funding for after-school programming
• Proposed budget includes a 1 mill debt reduction (from 4 to 3 mills) in the city's debt millage, a move that will provide immediate property tax relief to Detroit homeowners. Since 2023, homeowners have seen a 6-mill debt reduction. So, for a property worth $100,000, this equates to an estimated savings of $700 since 2023.
• "13th Check" for Legacy Pension Retirees: Continued $10 million prorated check for legacy pension retirees.
• Creation of the Occupy the Summer Youth and Young Adult Programming Initiative will:
  • Create a dedicated Summer Violence Reduction collaborative.
  • Provide funding for extended hours in Recreation Centers.
  • Return of Midnight Basketball Leagues.
  • Add a $500,000 increase in funding for Grow Detroit's Young Talent to a total of $2.5 million
• The newly proposed Office of Neighborhood and Community Safety will support:
  • $10.8 million in continued funding for Community Violence Intervention (CVI) programs.
  • $1 million for continued Ceasefire program support.
  • Adding a 3rd shift to provide 24-hour coverage to the City's Mental Health Co-Response.
  • $1 million for Public Lighting Authority (PLA) operating budget increase to fund Mid-block lighting Program which will add new streetlights to middle of neighborhood streets.
  • $1 million for the Dead, Dangerous, and Diseased Tree Removal program.
  • $1 million for the Neighborhood Beautification Grant program
• Proposing to establish an Office of Senior Affairs which will support:
  • Senior Compliance plan, senior building improvements - instructed BSEED to prioritize compliance and inspection efforts in senior buildings.
  • New senior affordable housing groundbreaking recently (Greyston)
  • $750,000 for Senior Food Access program
  • $1 million for Senior Transportation funding (Accessibili-D)
• Sidewalk Repair: Reprioritize $8 million to clear backlog

"This proposed budget is a testament to the fiscal discipline we - the administration and City Council - have maintained over the last decade plus, allowing us to transition into a new era of growth under Mayor Sheffield's leadership," said Chief Financial Officer Tanya Stoudemire. "By balancing our long-term sustainability with targeted investments in community safety and human services and other areas, we are ensuring that Detroit's financial foundation remains solid while providing the necessary resources for our residents to rise higher."

The Proposed Budget is for Fiscal Year 2026-2027, which starts July 1, 2026, and ends June 30, 2027. Several public meetings were held including the Annual Public Budget Meetings in October, and the Community Budget Priorities Forums held with each City Council District in January.

City Council will hold Budget hearings for departments starting Wednesday, March 11, which are open to the public. Find the budget hearings schedule and presentations at detroitmi.gov/budget.