Detroit Budget Finance & Audit Committee Hearing on Auditor General's Office - March 19, 2026

The Detroit City Council's Budget, Finance, and Audit (BFA) Standing Committee convened on March 19, 2026, to hear the Fiscal Year 2027 budget presentation from the Office of the Auditor General (OAG). The meeting began after a brief recess due to a lack of quorum. The Auditor General, Laura Goodspeed, presented the OAG's budget request, highlighting the office's independence, recent achievements, staffing challenges, and the need for proportional funding. The committee placed the OAG's entire budget into executive session and discussed a pending claims issue.

Public Comments & Testimony

• No public comments were made during this hearing.

Discussion Items

• OAG Budget Presentation: Auditor General Laura Goodspeed presented the OAG's FY2027 budget request. She noted the office is celebrating 89 years of service, established in 1936. The OAG currently has 19 filled FTEs out of 23 authorized (4 vacancies), having increased from 18 to 23 FTEs last year. The office aims to reach its optimal staffing level of 25 FTEs. The mayor's proposed budget of $5,634,000 represents a decrease of $217,000 from the prior year, effectively wiping out half of the proportional funding allocated last year, eliminating two FTE positions, and cutting the training budget. Goodspeed requested the committee fund the OAG at its second-year proportional funding allocation of 0.41% of the prior year general fund budget, a total increase of $940,000 over the mayor's proposal.
• Staffing and Morale: Goodspeed detailed that 63% of OAG staff are union members, and auditors operated under expired contracts for two years, which significantly impacted morale. Contracts were ratified in December 2025, but supplemental agreements are still being negotiated.
• Audit Work: The OAG has several ongoing audits, including citywide payroll, employee pre-onboarding, and position control. A performance audit of the Department of Housing and Revitalization (HRD) regarding processes for the unhoused community was initiated in December 2025 at Councilmember Johnson's request but was suspended in January 2026 pending the reorganization of the housing departments. A follow-up audit of the Assessor's Office was also suspended due to a perceived conflict of interest. A new audit of DDOT was initiated. The OAG published four reports in 2025-2026, including a forensic audit of residential property tax assessments and the Opera Neighborhood Beautification Initiative Program.
• External Audit: The external audit of the city's financial statements for FY2025 received an unmodified opinion from Plante Moran, which will continue as the external auditor for the next five years.
• Claims: Goodspeed reported that 13 claims (totaling $10,000) were appealed to the AG in 2025, with two claims awarded totaling $5,850, mostly involving vehicular damage from dead trees. An additional $19,000 in claims dating back to 2023 remain unpaid. Goodspeed stated she met with the corporation counsel and legislative policy division last week and expects a resolution soon.
• Towing Rate Commission: The Auditor General chairs the Towing Rate Commission, which last convened in 2024. Goodspeed noted she currently lacks a quorum and hopes to convene in April to recommend rates by October 1, 2026.
• Peer Review: The OAG passed its first-ever peer review in April 2023 and is scheduled for its next three-year review in August 2026, which Goodspeed expressed confidence they will pass.
• Proportional Funding: Goodspeed underscored that the four oversight agencies collectively request less than 1% of the prior year general fund budget. The OAG's specific request is for 0.41%.
• Councilmember Questions and Comments: Several councilmembers expressed support for the OAG's work. Councilmember Benson inquired about enforcement mechanisms for audit recommendations, noting the establishment of an internal audit division. Councilmember Whitfield Callaway asked about the timeliness of recording property title transfers and uncapping taxes, and requested follow-up on prior recommendations regarding the Assessor's Office. Councilmember McCampbell asked about the criteria for triggering forensic audits and was informed that potential criminality is referred to the Office of the Inspector General.

Key Outcomes

• Motion to Place OAG Budget into Executive Session: Councilmember Benson made a motion to place the OAG's entire budget into executive session, which was approved without objection.
• Motion to Discuss Claims Ordinance Revision: A motion to place a discussion on the revision of the claims ordinance into executive session was approved without objection.
• Motion to Discuss Proportional Funding: A motion to place a discussion on proportional funding for the OAG into executive session was approved without objection.
• Motion for Report on Duplication of Services: Councilmember Waters made a motion to include a closing resolution directing the Auditor General to report back to City Council on duplication of services across city departments. The motion was approved with discussion, and the exact wording will be finalized during executive session.