Detroit non-departmental budget hearing for 2025-2026

Copublished with BridgeDetroit. 

Detroit City Council is holding 46 hearings this month as part of its annual budgeting process. Outlier Media has teamed with Detroit Documenters and BridgeDetroit to cover all of them.

Non-Departmental/Capital Projects/Debt Service
Hearing date: March 26
Proposed budget: $248,249,628
Number of employees: 165 FTE

What’s new this year

• Post-Bankruptcy Pension Contributions: Fiscal year 2026 includes $172.6 million for legacy pension obligations, drawn from the General Fund, Retiree Protection Fund and grants. This is part of Detroit’s ongoing return to pension funding after the 10-year “funding holiday.” 
• Grand Bargain Funding Continues: Detroit will continue to receive $18.7 million annually for the next 10 years from the Foundation for Detroit’s Future and the Detroit Institute of Arts, contingent on compliance and reporting. 
• General Fund Surplus Reinvestment: From the $109 million fiscal year 2024 surplus, $96 million has been allocated by Mayor Mike Duggan, including $12 million for cleaning up alleys, freeways and corridors and $25 million for blight remediation, both under Non-Departmental. 

Things to watch

• Reporting Structure Concerns: Non-Departmental remains one of the least transparent parts of the budget — with funding for programs, people and services still grouped together without clear attribution. 
• Reductions to Cultural Institutions: Decreased funding for Detroit Zoological Society (down about $1.24 million) and Eastern Market (down $250,000) may affect services or programming. 
• Pension Cliff by 2036: The Retiree Protection Fund will be depleted by 2036, at which point the General Fund must fully cover legacy pension contributions (about $130 million per year). 

Other things to note

• New Focus on Solid Waste: Solid Waste Services Support received a major budget increase, signaling a stronger city emphasis on waste management. 
• Legacy Support Continues: Despite some cuts, institutions like the Charles H. Wright Museum and the Detroit People Mover retain or grow support. 
• Improved Credit Rating: Detroit regained investment-grade status in 2023 and continues to meet annually with rating agencies to seek further upgrades. Better credit ratings lower borrowing costs. 

For more information, check out the video of this budget hearing. 

—Chandler Vaughan, Detroit Documenters