Summary: After decades of declines, Mayor Duggan proposed a $21 million increase for DDOT in the City’s FY 2025 budget. While not enough to solve DDOT’s problems, TRU feels it’s a great step in the right direction. Detroit City Council will consider it Friday March 22 at 2pm, including taking public comments.
Over the past 20 years, the City of Detroit slashed DDOT service by cutting its funding by more than half!
DDOT operates hundreds of buses that provide tens of thousands of rides each day. DDOT’s funding comes from a combination of city, state, and federal funds and bus fares, with City and state funds as the largest sources (with rare COVID exceptions).
As a City department, the Mayor and City Council decide DDOT’s budget every year, balanced among many other critical needs. While worst during bankruptcy, the City consistently cut DDOT funding from 2006-2015 and failed to keep up with inflation most other years. Detroit has fallen further behind, even as other communities grew their investments in transit.
These funding cuts meant bus service levels and driver pay were gutted. Exacerbated by COVID, DDOT has struggled to hire and keep enough drivers to provide consistent sufficient bus service throughout our large city.
Mayor Duggan proposed a notable increase in DDOT funding
After decades of flat or declining funding, we’re excited to see that Mayor Duggan proposed a $21 million increase in DDOT funding in next year’s budget to hire 117 more bus drivers, in addition to filling the 111 vacancies at DDOT right now. It far from makes up for past cuts, but it finally puts DDOT on the right path.
In total, Mayor Duggan proposed a total of $188.9 million for DDOT, up from the $167 million adopted in the FY24 budget and $159 million spent in FY23. Note – it appears that $78 million of the DDOT budget is from general City coffers, up from $74 million last year. (We’ve asked the budget department to clarify the sources of the funding increase.)
The proposed FY25 budget is balanced, despite pressure from current services and competitive wages. It prioritizes public safety, public transit, retirees, elections, and homelessness services. This budget supports our highest priorities, keeping our promise to our retirees and providing a more Vibrant, Safe, and Sustainable City for Detroiters.
– Mayor Mike Duggan, March 7, 2024 Budget Address
Details of Detroit’s proposed FY25 Financial Plan detail $5.4 million to pay for the pay increases drivers got in January and $6.5 million for “DDOT Service Expansion,” hiring 138 people. It also includes almost $1 million for “insurance cost escalation” and $224,000 for “Mobility Innovation Research and Strategy.” (page B20-5 of the FY 2025-2028 Four-Year Financial Plan)
Assuming they’re able to hire and retain staff as planned, DDOT plans to restore service in June and again in September.
Overall, the majority of DDOT expenses go to pay people:
- $60M for salaries and wages
- $49M for employee benefits
- $29M for “operating services”
- $16M for contractual services
- $13M for operating supplies
- $21M for other.
For what it’s worth, in addition to planning for 117 more drivers, they plan to cut from 14 to 3 “Transportation Terminal Supervisors” and from 14 to 4 “Transportation Station Workers” while they add 4 ADA “Transportation Emergency Dispatchers,” 11 “Service Guards General,” and a Press Secretary.
Note that that $44 million for administration includes $29 million for “legacy pension obligations and debt service.”
Other DDOT News
Mayor Duggan announced March 15 that the new transit center being built at the site of the old state fairgrounds will be named the Jason Hargrove Transit Center, after the long-time DDOT driver who died in the early days of COVID.
Also, the Detroit Police Department will be taking over security on DDOT buses instead of the Detroit Transit Police. Within the Mayor’s proposed budget is a transfer of $4.8 million to DPD to hire 45 staff and create a Transit Security Division, transferring this function from the Detroit Transportation Corporation, which run the People Mover.