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Politics & Government

Detroit mayor to present first post-bankruptcy budget

mike duggan shaking a woman's hand

Detroit Mayor Mike Duggan will deliver his annual budget address to the Detroit City Council Tuesday.

It’s a different process this year. That’s because most of the budget is already laid out in the city’s court-approved bankruptcy exit plan, formally known as a “plan of adjustment.”

City Council President Brenda Jones says Detroit’s elected officials have just a limited role the city’s post-bankruptcy budget process.

“It’s truly a new process, because this is the emergency manager’s budget,” Jones says, noting that the budget also needs approval form a state-appointed financial review commission.

But Duggan’s address will be followed by the council’s usual round of budget hearings. “We’ll go through the process as we normally do … we’re going to do our job,” Jones says.

The Detroit financial review commission met Monday. Commission members reviewed budget numbers presented at a revenue estimating conference Detroit held last week.

Officials said revenues are actually coming in slightly higher than projected, while the general fund budget itself could come in slightly under-budget.

However, there are likely to be some (possibly major) modifications before the budget is finalized mid-year. Some big unresolved issues include finalizing the deal that will spin off part of the Detroit water department to the regional Great Lakes Water Authority; and potentially restructuring some of the city’s remaining $1.9 billion in outstanding debt.

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