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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.

Sarah Cwiek joined Michigan Public in October 2009. As our Detroit reporter, she is helping us expand our coverage of the economy, politics, and culture in and around the city of Detroit.
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