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Detroit committee hears HR budget that raises minimum to $21.45, expands parental leave and pilots AI training
Summary
The council's Expanded Budget Finance and Audit committee heard the Human Resources Department's FY 2026 presentation, which includes a living wage of $21.45 per hour effective July 13, expansion of paid parental leave from six to eight weeks, investments in training and an AI pilot, and recruitment partnerships with Michigan universities.
The Expanded Budget Finance and Audit standing committee on Wednesday heard the Human Resources Department’s fiscal 2026 budget presentation, which included a living-wage increase, an expansion of paid parental leave and new workforce-training investments.
Human Resources Director Denise Starr told the committee the city will adopt a living wage of $21.45 per hour, effective the first full pay period of the fiscal year beginning Monday, July 13, and said the administration will expand paid parental leave from six to eight weeks. "This is more than just a compensation adjustment. It is a commitment to our employees," Starr said, adding the program has supported roughly 400 employees and their families since its 2024 start.
Starr and deputy director Ursula Taylor framed the proposals as retention and equity measures tied to the mayor’s RISE Higher platform. Taylor outlined four strategic pillars — recruitment and retention, investment in learning, culture and operational excellence — and cited metrics the administration says show improvement: a 92% favorable rating on new-employee experience surveys, a 23% reduction in probationary discharges and consolidation of 88 pay ranges into 20 unified pay grades.
Committee members pressed for budget detail. Council Member Scott Benson asked how much the parental-leave program costs and how its effects will be measured. Starr said the program’s expense has been less than originally feared and that, earlier in the hearing, staff cited a figure of about $500,000 per year excluding overtime; Starr also told the committee that the program’s cost has been described in some estimates as "approximately half $1,000,000 per year," and staff estimated a move from six to eight weeks at about $650,000. Starr said paid leave costs are budgeted across departmental salary lines rather than as a separate line item.
On training and technology, Chief Learning Officer Dr. Iris Ware described an in-house learning ecosystem that has delivered thousands of workshops and is piloting AI-driven training and coaching tools. "We use AI as a tool. It is not the expert," Ware said, describing pilot work intended to free staff from routine tasks and to support simulation-based coaching. HR told the committee it is working with IT on an AI policy to protect data and reduce risk before broader rollout.
Members asked for follow-up data. Starr said the department will provide additional retention and costing metrics as more longitudinal data becomes available, and members requested itemized budget locations for parental-leave costs.
Next steps: the committee concluded the HR hearing and invited Employment Solutions to present; several related matters (contracting review, a My Tri Share discussion and a parking issue) were sent to executive session via separate motions (see separate article).
