Detroit City Council Fiscal 2027 Budget Executive Session - March 30, 2026

The Detroit City Council met in executive session on March 30, 2026 to deliberate on Mayor Sheffield's proposed fiscal year 2027 budget. The overall budget is approximately $3 billion, with $1.56 billion in discretionary general fund dollars. The session focused on council-proposed changes, funding sources, and closing resolutions. The council held 47 budget hearings over the prior three weeks. The deadline for final council votes is April 7, 2026, with the mayor's veto deadline set for April 13 and a possible override vote by April 16.

Discussion Items

• Budget Overview and Constraints – CFO Irv Corley explained that council can only influence the general fund portion of the budget. The general fund surplus totals approximately $138 million, composed of $53.1 million in fund 1000, $38.6 million in the blight remediation fund (1003), and $39.1 million in the capital projects fund (4533). Corley noted that Mayor Sheffield has appropriated all surplus dollars, meaning council must consider reducing some of her priorities to fund their own. A $42 million capital income tax reserve was identified as a potential stable funding source.
• Code Enforcement Expansion – Councilmember Benson proposed adding 3 code enforcement officers at a recurring cost of $390,000 ($130,000 each for salary and benefits) (line 6, approved). A separate item (line 10) for a $100,000 public awareness campaign on code enforcement was also approved and will be combined with the FTE funding.
• Truck Route Studies – A $300,000 study around Stellantis facilities was proposed (line 17). After discussion, council agreed to expand the study citywide and pin the item to determine a final amount, with a suggestion of $1 million to cover all districts.
• Retiree Third Check – Councilmember Waters proposed adding $2 million to Mayor Sheffield's existing $10 million for general city retirees' third check (line 16). The item was pinned for further justification.
• Public Restrooms in Parks – Councilmember Santiago Romero moved to add a closing resolution to study implementing public restrooms (line 22). Councilmember Callaway submitted a related memo and will reframe her questions as statements. The motion passed, and the item will be directed to the General Services Department.
• Traffic Calming on Kirchoff, Jefferson, and Lafayette – Council President Pro Tem Young requested $2 million one-time for speed humps, curb extensions, and corridor redesign. The motion was approved (line 35).
• Mental Health Co-Response – Councilmember Santiago Romero proposed that mental health calls be routed through the Fire Department first (line 48). Councilmember Callaway and Pro Tem Young objected, arguing the Police Department's existing mental health unit is better suited. The motion passed 6-2 (Young and Callaway voting no).
• Revenue Options – Council discussed multiple revenue-generating proposals: an amusement/entertainment tax (line 39, moved to closing resolution by Callaway), a local option sales tax study (added by Johnson), and a broader working group on revenue growth (added by Santiago Romero, joined by McCampbell).
• Artificial Intelligence Municipal Public Bank – Pro Tem Young proposed a novel concept but acknowledged constitutional and cost barriers (estimated startup $250 million to $2 billion). The item was moved to closing resolution (line 43).

Key Outcomes

• Approved for Closing Resolution (language forthcoming): Many non-monetary items including coordination on vacant properties (line 8), code enforcement education (line 7), demolition preservation plans (line 14), public restroom planning (line 22), leaf vacuum program (line 23), and others.
• Approved with Funding:
  • Line 6: $390,000 recurring for 3 code enforcement officers.
  • Line 10: $100,000 for code enforcement education campaign (to be combined with line 6).
  • Line 20: $50,000 one-time for additional bike racks.
  • Line 21: $1 million for Chinatown streetscape improvements.
  • Line 24: $200,000 for streetscape studies on Schaefer Street and James Cousins.
  • Line 35: $2 million for traffic calming on Kirchoff, Jefferson, and Lafayette.
• Pinned Items (to be revisited): Retiree third check ($2M, line 16), truck route study (citywide, line 17), litter campaign funding (line 18), ARPA outstanding funds document (line 41), and items from Councilmember Miller (lines 50-51).
• Other Actions: Council approved a motion to have LPD create a document for ARPA spending (line 41, pinned). Line item 45 (plan ahead program) was removed as duplicative. Several items were combined (e.g., line 76 merged into line 18).
• Next Steps: The executive session will continue daily until April 7. Council will vote on Schedule A (CDBG/NOF allocations), Schedule B (budget amendments), the closing resolution, the administration's compensation book, and tax millage rates. The mayor has until April 13 to veto any council changes.