Committee forwards proportional‑funding resolution for oversight agencies after fiscal impact review

The Detroit City Council Budget, Finance and Audit Standing Committee voted to send a resolution establishing a proportional funding formula for four independent oversight agencies to a formal council session without recommendation after receiving a fiscal impact statement.

Donnie Johnson, deputy budget director, told the committee the city’s proposed fiscal 2026 budget currently funds the four oversight entities — the Office of the Inspector General, the Office of the Auditor General, the ombudsman, and the Board of Ethics — at $9.6 million and 48 full‑time equivalents (FTEs). The proportional funding resolution would increase combined funding to $13.7 million and 64 FTEs, an increase of $4.1 million (about 43 percent) and 16 FTEs (about 33 percent), Johnson said. He said the fiscal impact would begin in fiscal 2026 if the council amended the proposed budget to implement the resolution.

Johnson cautioned the committee that the resolution’s formula relies on prior year adopted budgets as the baseline and that those baselines can include one‑time items; relying on such baselines could produce year‑to‑year volatility. He also said the resolution requires a minimum funding threshold and a review of the formula at least every four years. Johnson said the acting chief financial officer would formally sign and distribute the fiscal impact statement later that afternoon.

Inspector General Aaron Marable, who helped lead the working group that drafted the proposal, urged adoption and called the $4.1 million increase “long overdue,” saying the additional resources would improve oversight productivity. Auditor General Laura Goodspeed described the agencies’ combined targeted proportional funding as “less than 1% of the prior year adopted general fund budget” and said oversight offices were prepared to offer ramp‑up options and alternative amounts.

The Board of Ethics director told the committee the board’s proportional funding request was roughly $1.4 million to add three FTEs to a staff of four and compared the board’s budget to peer cities.

Committee members expressed support for the principle of proportional funding but said they were concerned about the timing because the council is amid budget deliberations. The chair said passing recurring increases now would bind future budgets; members agreed to move the resolution to a formal session for fuller discussion with the administration and oversight agencies. The committee transmitted the resolution to formal session without recommendation by voice agreement with no objections.

Full council consideration will determine whether the proportional funding measure is adopted, amended, or referred. The committee recommended further discussions between oversight offices, the budget department and the administration to identify possible phased approaches or alternative funding sources.