WATCH: Mayor Duggan outlines budget cut plan in wake of COVID-19 pandemic

Mayor Mike Duggan
Posted at 2:11 PM, Apr 14, 2020
and last updated 2020-04-15 06:08:29-04

(WXYZ) — Detroit Mayor Mike Duggan has announced his plan to make up for $348 million in lost revenue due to the COVID-19 outbreak.

Duggan made the announcement Tuesday night during a presentation on the city's cable channel.

Duggan says his plan to eliminate the budget shortfall follows 6 principles:

  1. Maximize the use of the Rainy fund and other savings
  2. Police, Fire, EMS, and Bus services should not be cut
  3. Temporary and part-time workers should be reduced before cutting full-time city employees
  4. The virus is temporary - we should try to reduce hours instead of laying off, so we don't lose our employee's talents for good
  5. Prioritize making sure our employees and their families don't lose their health care
  6. If it's a choice between funding and employees delivering city services, city service must take priority

Duggan says financial management, including pushing out blight removal and capital projects, will cover 80% of the shortfall, or about $298 million.

However, he says they will have to lay off 200 part-time, temporary and seasonal employees. He says the city will file unemployment claims for them.

That leaves $44 million and the 8,000 city employees will fall into 4 groups.

  • 10% workers will work 10% of the time and will still receive their health care
  • 80% workers will work 80% of the time and will still receive their health care
  • 95% workers will work 100% of the time and take a 5% pay cut, while receiving their health care
  • 100% workers will work 100% of the time and will receive all of their pay.

No one will get a scheduled pay raise as of July 1.

900 workers are in Category A, which includes DPD traffic control officers, DDOT ticket sales tellers,, DPW drivers road repairs and other services, BSEED permits/Building staff, and office assistants. These people will be eligible for state underemployment insurance and the $600 from the federal government

Duggan said he could not make cuts to the City Council and the independent agencies within the city's government because he does not have the authority.

He said that plan will affect the city’s 9,000 employees.

The mayor was clear that tough sacrifices will need to be made in light of this pandemic — an estimated $300 million lost over the next year and a half, as main sources of income for the city like gaming and income tax, have been seriously trimmed in wake of this health crisis.

Read the full presentation below.

4.14 Budget Presentation Final by WXYZ-TV Channel 7 Detroit on Scribd

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