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Posted on 05/23/2025 9:12:26 AM PDT by george76
DENVER — Mayor Mike Johnston announced furloughs and a hiring freeze during a Thursday morning news conference, as the city faces a $250 million budget deficit.
This comes as the State of Colorado had to manage a more than $1 billion budget shortfall this year.
In 2025, Denver is experiencing a $50 million revenue gap due to revenue flattening and increasing costs, according to Johnston. Heading into 2026, the mayor is projecting a $202 million deficit to manage.
He puts part of the blame on declining sales tax revenue that he says was caused by economic uncertainty created by President Trump, even though trump has only been in office since mid-January.
"This is the fundamental dynamics of a country that is worried about the economic forecast and is stopping spending as a result," said Johnston.
He also blames Denver’s government spending that he says mostly occurred prior to him taking office.
"Structurally, over the last 12 years, we have grown the cost of government 8% more than we've grown the revenues," Johnston said. "That is unsustainable growth of government.”
To balance the budget, Johnston said the hiring freeze will last through at least Sept. 15, coinciding with the completion of the 2026 budget. City employees will also follow a tiered furlough system, beginning June 1.
"Our lowest paid employees will take two [days], all of our mayoral appointees, all of our senior Cabinet members and I will all take seven [days], which will be the largest number of furlough days for all city employees," Johnston said. "That tiered balance both helps us save $10 million and helps us protect those city employees that are struggling the most to pay their rent."
...
The City and County of Denver will limit discretionary spending, as well as reduce and restructure contracts to address the deficit.
City of Denver employees account for 70% of costs, according to Johnston. The city's workforce grew from 10,000 to now 15,000 people over the last 12 years. Therefore, the cost of the city's government grew 8% more than the city's revenue has, according to Johnston.
This brings up the question of whether the city will eliminate some positions altogether.
"We will have to put all solutions on the table. That means we'll have to look at reduction or elimination of programs," Johnston said. "We'll have to look at consolidation of departments, and yes, we will have to look at layoffs. We do not envision a scenario where it's possible to right size this budget without that impact on personnel."
The furloughs and hiring freeze are two of the primary strategies for the city driving a reduction in costs. The mayor also mentioned moving more government services online to lower costs.
...
The challenge that the mayor's office faces is current consumer sentiment is twice as low as it was the day quarantine for the COVID-19 pandemic began in March of 2020. This is the third lowest the consumer sentiment has been in the last 75 years. You have to go back to the Great Recession and Black Monday in the 1980s to see this low of consumer confidence, Johnston said.
The same is true for business confidence, the mayor reported. It's the lowest it's been in the last 15 years.
"It's... hard in this city to raise two kids and not be able to pay your rent every month. It's hard to watch your retirement that you worked 40 years to build to evaporate by 20 or 30% when the stock market collapses. The truth is, it's hard when it costs 100 bucks to take your family to the movies," Johnston said.
The mayor's office plans to continue with investments in capital projects that he says will increase revenue for the city, such as the Denver National Women's Soccer League (NWSL) franchise building a stadium in the city. The mayor clarified that this investment does not come from the city's general fund. meaning the investment does not cut a city employee or program.
While the establishment of the Denver NWSL stadium is a $2.2 billion investment, Johnston projected it will create 1,100 jobs and a $0.5 billion in sales tax revenue.
"1987 right after Black Monday, probably seemed like a terrible time to drive a significant investment in the city," Johnston said. "Building the convention center.... turned out to be a massive driver for the city. 1991 coming out of an early recession.... turned out to be the exact right time to invest in Coors Field, which is a massive driver of revenue long term, maybe our most catalytic investment in the last 15 years. 2008 in the heart of the Great Recession was the launch of Union Station redevelopment."
He also said the city will continue to invest in fighting homelessness.
"Homelessness is absolutely an investment in the city's economic growth," said Johnston.
As for spending on undocumented immigrants, he said it has come down.
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Colorado Ping ( Let me know if you wish to be added or removed from the list.)
Too damned bad losers!
Puff away while the state slides into the abyss.
When I was stationed there in 1974, Denver was a beautiful and safe city...................
They have to look at payroll costs.
70 percent of city spending is for employees, simply paying all the hired help?
Are all those jobs really necessary? Are city employees paid more than people doing similar work in the private sector?
Many cities seem to have similar budget problems.
If the mayor is actually serious he would start with a 10% cut in his salary. Then do the same to as many employees of the city that he had the power to do so.
How much are they spending on benefits for illegals?
Vote Blue, enjoy the suck!
Tons, do not know the number
Diversity is paying off for Denver.
I thought legalizing pot years ago was going to bail them out.
Hmmmmmmm? Which party?
Denver, what are you thinking? Million/billion dollar deficits never stop the Kalifornia commie democrats running the state from spending more. They just raise the tax revenues.
250 million is low, I bet. And don’t forget the wonderful new womyn’s soccer stadium which will cost much more than whatever phony estimate they put out.
Same as LA and SF.
Money came in under the table and now the faucet is turned off.
David Hogg looks like the love child of Mike Johnston and Charlie Kirk.
And of course, no one in the media confronts him about this outright, blatant lie. Denver has become a 3rd world shitehole. That is the problem, Mr. Johnston.
What? no lawsuits to stop him?
The mayor’s office plans to continue with investments in capital projects that he says will increase revenue for the city, such as the Denver National Women’s Soccer League (NWSL) franchise building a stadium in the city. The mayor clarified that this investment does not come from the city’s general fund. meaning the investment does not cut a city employee or program.
While the establishment of the Denver NWSL stadium is a $2.2 billion investment, Johnston projected it will create 1,100 jobs and a $0.5 billion in sales tax revenue.
Women’s soccer is not going to produce 1,100 jobs anywhere anyhow. Hell, I would be shocked if Coors Stadium produce 1,100 jobs and 90% of them are seasonal and parttime.
There has to be more than a stadium as part of that $2.2 bilion, housing? shoping mall? the figure just does not make sense for just a soccer stadium.
I just found https://denvernwsl.com/ and it shows 6 large building as part of the complex.
Other reports are the stadium itself is $50 million with $20 million in off site improvements ,trails, roads, etc.
https://coloradosun.com/2025/05/04/denver-soccer-stadium-opinion-nicolais/
The idea of 14,500 sports fans converging nearly 20 times a year — in addition to other events at the venue — is the type of panacea they could only dream about.
$50 million for a place to be used 20 times a year. Oh wait, they can do concerts there, until the neighbors complain about the noise. (One end is open so noice is going to prject thet way.) Trust me, been there, done that.
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