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Ann Arbor council adopts FY2027 budget, adds firefighter positions and funds Rising Hope for Housing
Summary
The Ann Arbor City Council approved the fiscal year 2027 budget with amendments that add recurring firefighter positions to reduce overtime and allocate $700,000 (marijuana excise and opioid settlement funds) to Rising Hope for Housing; councilors said the changes address public safety staffing and supportive housing needs.
The Ann Arbor City Council adopted its fiscal year 2027 budget on May 18, approving amendments that add firefighter staffing and direct new funding to the Rising Hope for Housing program.
Councilmember Redino moved an amendment to add two full-time firefighter positions and to offset much of the cost by deprioritizing a currently vacant human resources manager position and appropriating $27,546 from the general fund unobligated balance, which the council approved. Councilmember Harrison later moved and the council approved a separate amendment allocating $300,000 from the marijuana excise tax and $400,000 from opioid settlement funds — $700,000 total — to the Ann Arbor Housing Development Corporation for the Rising Hope for Housing program.
"This amendment takes a practical and responsible step toward addressing that challenge and begins right-sizing staffing levels within the Ann Arbor Fire Department," Councilmember Redino said, noting that adding positions is intended to reduce mandatory overtime. Supporters cited estimates that three additional firefighter positions (the administrator had previously proposed one) could reduce overtime by roughly 7,200 hours annually.
Councilmember Watson described Rising Hope's recent performance data from July'December 2025, saying the program enrolled 81 new participants and used a customized database to track outcomes. "Rising Hope was able to locate new housing" for program participants and coordinate move-in assistance, he said.
Speakers from AFSCME and other unions had urged a fair contract and higher wages for city employees during the public-comment period earlier in the meeting; councilmembers referenced those appeals during budget debate and said recruitment and retention were considerations in staffing decisions.
Mayor Taylor and budget sponsors said the budget remains balanced, maintains a AAA bond rating and reflects priority investments in public safety, housing, roads, climate action and other services. The council voted to approve the amended budget and related property tax millage rates.
The council directed staff to implement the approved amendments in the FY2027 budget and to report back as required under normal budget monitoring and labor negotiation processes.
