(The Center Square) – The city and county of Denver plans on hiring freezes and furloughs as it projects $250 million in revenue shortfalls over the next couple years.
Denver Mayor Mike Johnston, a Democrat, laid some of the blame on the Trump administration for the municipality’s budget woes in a fiscal update given on Thursday.
“The economic downturn and volatility brought on by President Trump is a major challenge facing Denver,” Johnston said in a written statement. “This uncertainty, coupled with declining revenues and significant growth in the cost of city government over the past decade, require us to immediately address the city’s structural budget deficit while protecting essential services and positioning Denver for economic growth in 2026 and beyond.”
The city projects a $50 million revenue gap for the remainder of this year and a $200 million shortfall in 2026.
Johnston explained the growth of city government is “unsustainable,” nearly doubling in size over the last 12 years while costs have increased 83% and revenue has grown by 75%, leaving an 8% difference.
“It is not possible to support that level of growth and the quality of services required at this pace,” he said.
The mayor said the city will move forward with revenue-generating projects that aren’t drawn from the general fund, such as the National Western Center expansion and the National Women’s Soccer League stadium development.
The furloughs will be tiered and from two to seven days depending on city employees’ pay. The city’s hiring freeze will be in place until Sept. 15.
To work toward a more sustainable government, Johnston said the city will put “all solutions on the table” including possible program reductions, department consolidations and layoffs.
