HomePublicationsNewsletter ArchiveVolume 27Issue 28City of Detroit Estimates Increasing Revenue in FY2022-2026

According to a press release issued September 15, the City of Detroit held its biannual Revenue Estimating Conference to update the Detroit Economic Outlook for 2020-2026.   Utilizing the Detroit Economic Outlook, a report composed by the City of Detroit University Economic Analysis Partnership, the City discussed the outlook for 2020 through 2026.  The report indicated that that the recovery from COVID-19 relating to employment is exceeding expectations.  At the conference, the City approved revised economic and revenue forecasts for the remainder of FY2022 as well as FY2023 to FY2026.

“As we implement our plan to invest federal pandemic recovery funds to bolster Detroit’s future and as we maintain financial responsibility for our budget,” said City of Detroit Chief Financial Officer Jay Rising, “the City will strengthen its structurally balanced four-year financial plan.”

With the two previous fiscal years marked by pandemic-driven revenue losses, the City’s revenue outlook is improving. Despite the expected continuation of the reduction of city income tax revenue, as nonresidents continue to work remotely, revenue is expected to increase as a result of the introduction of internet gaming and sports betting taxes. While the effects of the pandemic continue to pose a threat to the economic recovery of Detroit, the City remains committed to attracting new residents with good-paying jobs.

Estimated FY2022 General Fund revenues were reported at $1.106 billion for the current fiscal year ending June 30. This amount reflects an increase of nearly 11.2% ($111 million) from the previous estimate, but only 1.0% from pre-pandemic estimates.

Estimated FY2023 General Fund revenues, which begin July 1, 2022, are projected at $1.118 billion, up 1.1% ($11.7 million) from the revised FY2022 estimates. Consistent with this year-over-year growth, conservative General Fund revenue forecasts for FY2024 through FY2026 reflect continued growth of approximately 1.3% each year.

The revenue estimates presented at the conference will serve as the benchmark for the City’s FY2023 budget and its upcoming FY2023-FY2026 Four-Year Financial Plan. As state law requires, the City will hold another revenue conference in February 2022 to approve revised revenue estimates.

You can view past Revenue Estimating Conference reports for the City of Detroit here and the September 2021 Revenue Conference presentation here.

 

Upcoming Events

Casino Job Board

Official Publications

 

RMC Legal

Visit our other website below: