Detroit mayor to discuss budget shortage: ‘It’s going to affect all 9,000 of our employees’

City facing expected $300 million shortage

DETROIT – The coronavirus (COVID-19) pandemic is taking a financial toll on many Michigan residents, but it’s also leading to a new and troublesome crisis for the city of Detroit.

Detroit is now facing an expected $300 million shortfall, and Mayor Mike Duggan is expected to lay out his play to make ends meet during a news conference at 7 p.m. Tuesday.

WATCH: Detroit Mayor Duggan to discuss budget shortfalls amid COVID-19 pandemic

Specifically, the city is facing a projected $100 million deficit by the end of this fiscal year, which is June, and another $200 million deficit the following year.

The coronavirus has crippled two of the city’s key money streams: casino gaming and the income tax.

Duggan acknowledged the problem Monday during his daily briefing.

“We are going to have to, in the next week or two, address the city’s financial situation,” Duggan said.

After a day of discussions with the city’s union leadership and the Detroit City Council, Duggan is going to lay out steps to try to stop the financial hemorrhaging.

Local 4 has learned the expectation is that the city will be able to keep services intact, with police and firefighters being spared from the brunt of it.

But it’s clear cuts will have to happen somewhere.

The city has a rainy day fund post-bankruptcy that has about $100 million in it, according to Duggan. But that’s not enough to backfill what is now looking like a shortfall that’s three times as large.

“It’s going to affect all 9,000 of our employees,” Duggan said.

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