Detroit Mayor Proposes $3 Billion Budget With Living Wage Increase and Transit Expansion

Mayor Mary Sheffield unveiled a $3 billion spending plan for Detroit's 2027 fiscal year. The plan raises wages for city workers, expands bus service, and cuts property taxes. This marks Sheffield's first budget since she took office in January.

The spending plan totals $1.5 billion in the general fund. Across all city accounts, it exceeds $3 billion. Sheffield's proposal is $34.6 million less than the 2026 budget because tax revenues have tightened citywide.

"This budget focuses on building strong and safer neighborhoods, investing in our children, our youth and our small businesses, and reducing poverty and supporting our most vulnerable residents," Sheffield said, according to CBS Detroit.

Every full-time city worker will earn at least $21.45 per hour. That equals $44,616 each year. About 900 workers will get raises starting July 1, and 70% of them live in Detroit. This wage boost will cost $7.9 million.

"The people who serve this city deserve the dignity of being able to support for themselves and their families," Sheffield said.

Joe Valenti leads Teamsters Local 214. He praised the wage hike. "We do have members, employees that are working two and three jobs just to make ends meet, and this is not acceptable," said Valenti.

The Detroit Department of Transportation will receive $30 million in new money. Bus drivers will get $24 million for wage hikes and bonuses, pushing starting pay to $25 per hour. Operations will receive the remaining $6 million.

Sheffield announced free year-round bus rides for all students who attend Detroit Public Schools Community District and charter schools. A pilot program will provide ride-share services to students who miss school often.

Homeless services will receive $9.3 million in funding—a 10% jump from last year. This allocation supports a new Department of Human, Homeless and Family Services with a total budget of roughly $40 million.

Youth and senior programs will see more money. After-school programs will get $2.2 million, which is a 120% increase. The Grow Detroit's Young Talent summer jobs program gets $500,000 more for a total of $2.5 million. Senior transportation receives $1 million, and a food access program for older residents gets $750,000.

The proposal includes a 1 million dollar property tax cut for homeowners. This reduction would save residents $50 each year on a home valued at $100,000. When combined with previous cuts since 2022, total savings reach around $700 for properties at that value.

Infrastructure investments include $8 million for sidewalk repairs. The goal is to clear a backlog of 6,300 broken sidewalks within one year. Street lighting improvements receive $1 million.

Small business support includes $2.5 million for Motor City Match and $1 million for the Detroit Legacy Business Project, which helps businesses operating for more than 30 years.

The Detroit City Council will hold budget hearings through April before voting on the final spending plan. The fiscal year begins July 1.