In a defining moment for his administration, Detroit Mayor Mike Duggan has unveiled his final budget proposal, a $3 billion fiscal roadmap that aims to strengthen the city’s financial future while delivering key quality-of-life improvements. This historic budget plan focuses on reducing Detroit’s notoriously high property taxes, expanding transit services, addressing homelessness, and advocating for crime prevention funding—all without compromising city operations.

With Duggan choosing not to seek a fourth term and instead focusing on a run for Michigan governor in 2026, this budget sets the stage for his successor to build upon Detroit’s financial recovery and urban revitalization. But what does this proposed budget mean for Detroiters? Let’s break it all down.

Mayor Mike Duggan, Facebook

A Historic Property Tax Cut for Detroit Homeowners

One of the most significant highlights of Duggan’s budget is a 3-mill property tax reduction, the largest single-year cut in over a decade. For a home valued at $100,000, this equates to an annual savings of $150—a welcome relief in a city where property taxes have long been among the highest in the nation.

Why This Tax Cut Matters

Detroit property owners currently pay 68 mills if they qualify for a principal residence exemption and 86 mills if they do not. Comparatively, many neighboring suburbs have tax rates in the 40s and 50s, making Detroit’s rates a major deterrent for potential homeowners and investors.

“This doesn’t affect our operations. This doesn’t cut into any of our services,” Duggan reassured. “This is money that is being saved because we have paid off our past debt.”

Detroit has already reduced property taxes by 1 mill in both 2023 and 2024, making this year’s 3-mill cut a significant step forward. While this move brings some relief, Duggan acknowledges that more comprehensive tax reform is needed to make Detroit competitive.

The Missed Opportunity: Duggan’s Failed Land Value Tax Plan

In 2023, Duggan proposed a Land Value Tax Plan, which aimed to slash operating millage by 70% (or 14 mills) for homeowners while increasing taxes on vacant landowners and underutilized properties. The idea was to encourage development while easing the tax burden on those actually living and working in the city.

However, the Michigan Legislature never approved the plan, and Duggan’s final budget instead settles for a more modest 3-mill reduction—a step in the right direction, but far from the transformational change he originally envisioned.

  

Detroit’s Financial Health: “Revenues Running Very Strong”

Duggan’s budget proposal paints a fiscally optimistic picture. The city’s revenues are outpacing projections by $70 million, fueled by:

  • $22 million in higher-than-expected income tax revenue
  • $30 million in increased gaming tax revenue
  • $7 million in property tax growth

“This city is in good shape,” Duggan declared. “The reason we’re financially strong is our income tax revenue performance.”

The budget includes $500 million in reserves, which Duggan describes as a “cushion” to ensure financial stability:

  • $150 million in the Rainy Day Fund to protect against economic downturns.
  • $348 million in the Retiree Protection Fund to safeguard pension obligations for former city workers.

Detroit’s strong revenue growth has enabled the city to maintain 11 consecutive years of budget surpluses, a far cry from the bankruptcy crisis that defined Duggan’s early tenure.

Expanding and Improving Public Transit

One of the biggest quality-of-life improvements in the budget is a $20 million increase in transit funding, aimed at boosting bus service and hiring more drivers and mechanics.

Key Transit Investments
  • 45 new buses arriving in late summer.
  • 63 additional drivers and 24 new mechanics to improve reliability.
  • Daily bus service increasing from 178 to 220 buses.

For years, Detroiters have struggled with unreliable bus service, with as many as a third of the city’s buses often out of commission due to maintenance issues. Duggan’s transit overhaul seeks to fix these inefficiencies and bring service levels back to pre-pandemic highs.

“This is for the kind of service we deserve,” Duggan emphasized, pointing out that Detroit’s highest level of bus service was 214 buses before the pandemic. By January, he expects 220 buses to be running daily, a milestone for the city’s transit recovery.

Addressing Detroit’s Homelessness Crisis

The budget includes a 40% increase in homelessness funding, bringing the total to $8.4 million. This comes in response to a devastating tragedy in which two young children froze to death while sheltering in a van with their mother in a casino parking garage.

Key Homelessness Initiatives
  • Doubling immediate shelter beds from 110 to 220.
  • Expanding outreach workers to connect more people with services.
  • Exploring the use of recreational centers as drop-in shelters (a suggestion from City Council).

Despite these efforts, some community leaders remain critical. Rev. Roslyn Bouier of the Beloved Community United Church of Christ questioned why the budget includes $25 million for blight removal while only $1 million is added to the city’s Affordable Housing Trust Fund.

“Does anyone else find a problem with that other than me?” she asked.

City Council President Mary Sheffield, a mayoral candidate, emphasized the need for long-term housing solutions, rather than just temporary shelter expansions.

Public Safety & Community Violence Intervention (CVI) Programs

With federal funding for Detroit’s CVI programs set to expire, Duggan’s budget allocates $4.4 million to keep them running. The CVI initiative has been credited with reducing crime by intervening in at-risk communities before violence escalates.

Push for a Public Safety Trust Fund

Duggan is also urging the Michigan Legislature to approve a $75 million Public Safety Trust Fund, which would allocate $18 million annually to Detroit for crime prevention efforts. The funding is available, but political gridlock in Lansing has stalled the initiative.

“The $75 million is sitting in an account for public safety in the cities of this state,” Duggan explained. “It’s just waiting for the Legislature to act.”

City officials are pushing for the bill’s passage before Duggan leaves office, but its future remains uncertain.

Other Budget Highlights

  • $14 million for freeway, alley, and commercial corridor cleanup.
  • $2.5 million for Motor City Match, a program that provides funding and resources to small businesses.
  • $10 million for supplemental payments to city retirees (the "13th check").
  • $4 million for the Detroit Neighborhood Solar Initiative, promoting renewable energy in local communities.

   

What’s Next? City Council’s Role & Detroit’s Future

The Detroit City Council will hold budget hearings next month before voting on the final budget by April, ahead of the July 1 start of the new fiscal year.

With Duggan exiting the mayor’s office, the city’s next leader will inherit a budget focused on long-term stability, targeted tax relief, and public investment. As Detroit continues its comeback, the question remains: Will Duggan’s successor build on this foundation, or take the city in a new direction?

One thing is clear—this final budget isn’t just numbers on a page. It’s a reflection of Detroit’s past struggles, its present momentum, and its future potential.


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THINKING OF MOVING TO Metro Detroit, OR LOOKING TO RELOCATE IN THE AREA? VIEW A LIST OF CURRENT HOMES FOR SALE BELOW.

Metro Detroit Homes for Sale

Sort by:
6030 Vineyard Avenue, Pittsfield charter township

$649,900

↓ $15,100

6030 Vineyard Avenue, Pittsfield charter township

4 Beds 3 Baths 2,586 SqFt Residential MLS® # 81025045606
5194 Amelia Earhart Dr, Fenton charter township

$649,900

5194 Amelia Earhart Dr, Fenton charter township

4 Beds 3 Baths 2,158 SqFt Residential MLS® # 5050184750
10076 Majestic Blvd, Independence charter township

$649,900

↓ $5,100

10076 Majestic Blvd, Independence charter township

5 Beds 4 Baths 3,759 SqFt Residential MLS® # 5050182977
5959 34 Mile Rd, Bruce township

$649,900

↓ $40,000

5959 34 Mile Rd, Bruce township

4 Beds 3 Baths 2,332 SqFt Residential MLS® # 58050176702
700 S Adelaide St, Fenton city

$649,900

↓ $50,000

700 S Adelaide St, Fenton city

12 Beds 9 Baths 7,707 SqFt Residential MLS® # 20250020238
11770 Woodview, Hamburg township

$649,900

11770 Woodview, Hamburg township

4 Beds 2 Baths 4,276 SqFt Residential MLS® # 20250013705
218 Leafwood, Commerce charter township

$649,900

218 Leafwood, Commerce charter township

4 Beds 3 Baths 2,500 SqFt Residential MLS® # 20250014935
5018 Northlawn (colonial) Dr, Sterling Heights city

$649,900

5018 Northlawn (colonial) Dr, Sterling Heights city

5 Beds 3 Baths 2,800 SqFt Residential MLS® # 20240024500
1118 Longfellow Avenue, Royal Oak city

$649,500

↓ $25,500

1118 Longfellow Avenue, Royal Oak city

3 Beds 3 Baths 2,022 SqFt Residential MLS® # 81025047996
New
1439 Glastonbury Road, Ann Arbor city

$649,000

1439 Glastonbury Road, Ann Arbor city

3 Beds 3 Baths 2,938 SqFt Residential MLS® # 81025052280
359 Brookside Drive, Ann Arbor city

$649,000

359 Brookside Drive, Ann Arbor city

5 Beds 3 Baths 2,509 SqFt Residential MLS® # 81025050677
730 Haywood Drive, Saline city

$649,000

730 Haywood Drive, Saline city

4 Beds 3 Baths 3,326 SqFt Residential MLS® # 81025048763
5220 Nardoni Ln, Dryden township

$649,000

5220 Nardoni Ln, Dryden township

3 Beds 3 Baths 4,207 SqFt Residential MLS® # 58050188478
639 S Blair Ave, Royal Oak city

$649,000

↓ $50,000

639 S Blair Ave, Royal Oak city

3 Beds 3 Baths 2,227 SqFt Residential MLS® # 20250030163
3641 Green Lake Rd, West Bloomfield charter township

$649,000

↓ $50,000

3641 Green Lake Rd, West Bloomfield charter township

4 Beds 4 Baths 4,006 SqFt Residential MLS® # 20240044575
2600 S Christian Hills Dr, Rochester Hills city

$648,900

↓ $10,000

2600 S Christian Hills Dr, Rochester Hills city

4 Beds 4 Baths 3,888 SqFt Residential MLS® # 58050186144
28 Black Cherry Lane, Pittsfield charter township

$648,000

28 Black Cherry Lane, Pittsfield charter township

4 Beds 4 Baths 2,734 SqFt Condominium MLS® # 543298328
528 Hidden Ln, Grosse Pointe Woods city

$647,000

↓ $20,200

528 Hidden Ln, Grosse Pointe Woods city

5 Beds 3 Baths 4,339 SqFt Residential MLS® # 58050180794
737 Haywood Drive, Saline city

$645,000

↓ $20,000

737 Haywood Drive, Saline city

4 Beds 4 Baths 3,285 SqFt Residential MLS® # 81025049560
610 N 5th Avenue, Ann Arbor city

$645,000

↓ $55,000

610 N 5th Avenue, Ann Arbor city

3 Beds 2 Baths 1,430 SqFt Residential MLS® # 81024059613
35610 Jeffers Ct, Harrison charter township

$645,000

35610 Jeffers Ct, Harrison charter township

4 Beds 3 Baths 3,502 SqFt Residential MLS® # 58050133083
2922 Sleeth Rd, Commerce charter township

$644,900

↑ $10,000

2922 Sleeth Rd, Commerce charter township

4 Beds 3 Baths 2,820 SqFt Residential MLS® # 20230081320
27650 Hagen Rd, Chesterfield township

$642,900

27650 Hagen Rd, Chesterfield township

3 Beds 3 Baths 1,924 SqFt Residential MLS® # 58050188507
51381 Mauro Ln, Macomb township

$640,000

↑ $15,000

51381 Mauro Ln, Macomb township

4 Beds 3 Baths 4,900 SqFt Residential MLS® # 58050160153
50341 Jefferson Ave, Chesterfield township

$639,900

50341 Jefferson Ave, Chesterfield township

3 Beds 3 Baths 3,300 SqFt Residential MLS® # 58050190555
55743 Caesars Drive, Shelby charter township

$639,900

55743 Caesars Drive, Shelby charter township

4 Beds 3 Baths 3,154 SqFt Residential MLS® # 81025044172
2039 Greater Oak Dr, Lapeer township

$639,900

↑ $10,000

2039 Greater Oak Dr, Lapeer township

3 Beds 3 Baths 2,215 SqFt Residential MLS® # 20250034597
9638 Main Street, Northfield township

$638,500

↓ $30,500

9638 Main Street, Northfield township

3 Beds 3 Baths 1,716 SqFt Residential MLS® # 81025037226
55611 Bay Oaks Ct, Shelby charter township

$637,347

↑ $10,000

55611 Bay Oaks Ct, Shelby charter township

3 Beds 3 Baths 2,207 SqFt Residential MLS® # 58050180136
3012 Canopy Tree Way 9, Pittsfield charter township

$636,715

↑ $5,000

3012 Canopy Tree Way 9, Pittsfield charter township

3 Beds 3 Baths 1,820 SqFt Condominium MLS® # 20250008718
55671 Bay Oaks Ct, Shelby charter township

$636,139

↑ $11,856

55671 Bay Oaks Ct, Shelby charter township

3 Beds 3 Baths 2,207 SqFt Residential MLS® # 58050180130
830 Peaceful Court, Brighton township

$635,000

830 Peaceful Court, Brighton township

5 Beds 4 Baths 3,856 SqFt Residential MLS® # 81025045819
7580 Oakville Waltz Rd, Sumpter township

$635,000

7580 Oakville Waltz Rd, Sumpter township

3 Beds 2 Baths 2,556 SqFt Residential MLS® # 57050185128
2400 Rockport Court, Pittsfield charter township

$634,900

↓ $15,000

2400 Rockport Court, Pittsfield charter township

4 Beds 3 Baths 3,547 SqFt Residential MLS® # 81025031068
5470 Cheltenham Drive, Troy city

$633,900

5470 Cheltenham Drive, Troy city

4 Beds 3 Baths 3,875 SqFt Residential MLS® # 81025045223
2759 Bristol Ridge Drive, Ann Arbor city

$630,000

2759 Bristol Ridge Drive, Ann Arbor city

4 Beds 5 Baths 2,569 SqFt Condominium MLS® # 81025051353
1779 Mack Rd, Addison township

$629,900

1779 Mack Rd, Addison township

4 Beds 3 Baths 2,837 SqFt Residential MLS® # 58050190532
4841 Leesburg Dr, West Bloomfield charter township

$629,900

4841 Leesburg Dr, West Bloomfield charter township

4 Beds 4 Baths 3,738 SqFt Residential MLS® # 5050189381
4524 Cottonwood Drive, Lodi township

$629,900

4524 Cottonwood Drive, Lodi township

3 Beds 3 Baths 2,069 SqFt Condominium MLS® # 81025045332
331 Honey Tree Way, Ann Arbor city

$629,900

331 Honey Tree Way, Ann Arbor city

4 Beds 3 Baths 2,685 SqFt Residential MLS® # 81025044984
58574 Blackstone Way, Lyon charter township

$629,900

↓ $20,000

58574 Blackstone Way, Lyon charter township

4 Beds 3 Baths 3,002 SqFt Residential MLS® # 81025044513
3200 Weidemann Dr, Brandon charter township

$629,900

↓ $20,000

3200 Weidemann Dr, Brandon charter township

4 Beds 3 Baths 2,624 SqFt Residential MLS® # 58050185477
7277 Wellington Pl, Washington township

$629,900

↓ $40,000

7277 Wellington Pl, Washington township

4 Beds 4 Baths 3,896 SqFt Residential MLS® # 58050176547
New
3436 Roslyn Drive, Pittsfield charter township

$629,000

3436 Roslyn Drive, Pittsfield charter township

3 Beds 2 Baths 2,188 SqFt Residential MLS® # 81025052247
52600 Wellington Valley Dr, Macomb township

$626,400

↑ $900

52600 Wellington Valley Dr, Macomb township

3 Beds 3 Baths 2,558 SqFt Residential MLS® # 20240085502
758 Eagle Hill Road, Ortonville village

$625,900

758 Eagle Hill Road, Ortonville village

5 Beds 5 Baths 4,024 SqFt Residential MLS® # 81025044398
New
17624 Parke Lane Ln, Grosse Ile township

$625,000

17624 Parke Lane Ln, Grosse Ile township

3 Beds 3 Baths 2,714 SqFt Residential MLS® # 57050191326
New
3071 Allison Ln, Highland charter township

$625,000

3071 Allison Ln, Highland charter township

5 Beds 4 Baths 3,730 SqFt Residential MLS® # 58050190889
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