Detroit City Council Budget Hearing: Human Resources Department Presentation - March 20, 2026

The Detroit City Council's Expanded Budget, Finance, and Audit Standing Committee convened on March 20, 2026, to review the Human Resources Department's fiscal year 2026-2027 budget proposal. HR Director Denise Starr and her team presented strategic initiatives aligned with Mayor Mary Sheffield's "Rise Higher" platform, including a living wage increase, expanded paid parental leave, recruitment partnerships, and artificial intelligence training. Council members discussed cost implications, retention metrics, contract negotiations, and facility challenges, and referred several topics to executive session.

Discussion Items

• Living Wage Implementation: Director Starr announced a living wage of $21.45 per hour effective July 13, 2026, affecting approximately 900 employees (9% of the workforce) primarily in GSD, DPW, recreation, and driver positions. The wage is intended to improve retention and reduce the need for employees to work multiple jobs.

• Expanded Paid Parental Leave: Paid parental leave will increase from six to eight weeks at an estimated additional annual cost of $150,000 (from $500,000 to $650,000) covered by departmental salary budgets. Since its launch in 2024, over 400 employees have used the benefit. Councilmember Benson questioned the lack of formal retention metrics; HR indicated that measuring retention impact requires longer-term data.

• Recruitment and Vacancies: Director Starr reported that a firefighter recruit academy of 30 cadets recently started, with over 200 individuals on the hiring list. Councilmember McCampbell asked about specialized recruiters for fire; HR confirmed ongoing collaboration with the fire department. Councilmember Callaway highlighted partnerships with several Michigan universities (University of Detroit, Lawrence Tech, U-M Ann Arbor, etc.) to recruit local graduates, with Tracy Meek (HR Recruitment GM) leading the effort.

• Employee Stay Interviews: Councilmember Santiago Romero inquired about a new "state interview" process. Director Taylor explained it is a proactive manager-led tool to gather employee feedback on their desire to remain, not a performance evaluation. A toolkit and presentation were provided to departments.

• Outsourcing vs. In-House Costs: Councilmember McCampbell requested analysis of the cost differential between contracting for skilled trades and bringing positions in-house. Director Starr noted that no comprehensive study has been done but agreed to coordinate with departments. A motion to refer the topic to executive session was passed without objection.

• Flex Time and Hybrid Work: Councilmember Young II asked about flexible scheduling and virtual employment. Director Starr acknowledged flex time is built into some union contracts and that most employees (over 90%) are on-site (police, fire, DPW). Regarding hybrid work, she noted increasing office attendance due to parking needs.

• Artificial Intelligence (AI) Initiatives: Dr. Iris Ware, Chief Learning Officer, described AI training for HR first, partnering with IT to develop policies ensuring data safety. The department received national accreditation and is developing an AI certification program. Councilmember Young II presented cost-benefit projections suggesting a 150-500% ROI with a 1-3 year payback period.

• Stout Audit Concerns: Councilmember Callaway raised concerns about a Stout audit showing 29% payroll transaction errors. Director Starr clarified that many flagged items were retroactive pay adjustments per union contracts, not errors. She offered to provide further detail.

• Parking for Employees: The city is spending approximately $700,000 to prepare a parking lot for employees returning to the office. Director Starr explained that existing city-owned lots are not within walking distance or require significant investment. The Ford Underground garage is at capacity. A motion to put the parking situation into executive session was approved.

• Health Insurance Rates: Director Starr noted that the city's health insurance rate increases were half those of other Wayne County employers, attributed to wellness programs and employee assistance services. Councilmember Tate asked about expanding Ford Underground capacity; HR coordinates with municipal parking.

• Health Plan Enrollment Options: Councilmember Santiago Romero noted new employees are initially limited to Blue Care Network; HR confirmed that other plans (PPO, HAP) can be selected during open enrollment or upon qualifying life events.

• Union Contracts: Interim Labor Relations Director Valerie Colbert reported approximately five expired small AFSCME contracts currently being negotiated, with two contracts (DFFA and public attorneys) expiring in June 2026. She explained the delay for former APTI and SAAA groups due to union decertification and renegotiation timelines.

Key Outcomes

• Executive Session Motions: Three motions to refer topics to executive session were passed without objection:

  1. Analysis of contracting services that could be brought in-house (moved by McCampbell).
  2. Implementation of the Michigan Tri-Share child care program (moved by Callaway).
  3. Parking situation for employees (moved by Johnson).

• Follow-up Commitments: HR will provide additional data on the Stout audit, cost-benefit analysis of outsourcing, a list of recommendations for external conferences and certifications, and retention metrics for paid parental leave.