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Detroit Faces $300 Million Budget Hole, Duggan Says

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Lost revenues are impacting Detroit’s financial planning and will affect the city’s 9,000-employee workforce.

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Detroit is dealing with a $300 million deficit as a result of the COVID-19 outbreak.

We have been very frugal in recent years, and we’ve got significant money in rainy day funds.” — Mayor Mike Duggan

Mayor Mike Duggan said the lost revenues are cutting into the current fiscal year, which ends this summer. Most of the deficit, about $200 million dollars, will impact next year’s budget, which is being reviewed by the Detroit City Council.

Duggan said he thinks the city will be able to retain its services and avoid emergency management.

We have been very frugal in recent years, and with the great leadership of Council President Brenda Jones and the chair of our budget committee Councilmember Janee Ayers, we’ve got significant money in rainy day funds. Probably upwards of $100 million,” Duggan said. 

Duggan said the deficit cuts will affect all 9,000 city employees. The mayor is expected to broadcast his budget proposal tomorrow at 7:00 pm.

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Eli Newman, Reporter/Producer

Eli Newman is a Reporter/Producer for 101.9 WDET, covering breaking news, politics and community affairs. His favorite Motown track is “It’s The Same Old Song” by the Four Tops.

eli.newman@wdet.org Follow @other_eli

This post is a part of Coronavirus in Michigan.

101.9 WDET, Detroit’s NPR Station, is committed to providing accurate, up-to-date information on coronavirus, and it's related illness COVID-19, in Michigan. 

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