Denver Mayor Mike Johnston announced Thursday that the city is imposing a hiring freeze and staff furloughs in response to a staggering $250 million budget deficit. Johnston attributed the crisis partly to what he called “economic uncertainty” caused by President Donald Trump, despite Trump returning to office only four months ago.
“We are in the third-lowest consumer sentiment moment in 75 years,” Johnston claimed, adding that revenue has flattened while costs, especially government spending, have surged. Johnston noted Denver’s workforce ballooned from 10,000 to 15,000 over the past 12 years, outpacing revenue growth by 8%.
The fiscal emergency stems from a $50 million revenue shortfall this year and a projected $202 million gap for 2026. To close the gap, Johnston outlined a tiered furlough system starting June 1, where higher-paid city employees, including his own cabinet, will take up to seven unpaid days. Lower-paid workers will take two days.
Johnston said layoffs and department consolidations remain possible. “We will have to put all solutions on the table,” he warned. In addition, the city will limit discretionary spending, restructure contracts, and move more services online to cut costs.
Denver residents are being asked to weigh in on budget priorities. Despite the cuts, Johnston pledged to continue investing in major projects, such as a $2.2 billion National Women’s Soccer League stadium that he claims will generate jobs and $500 million in sales tax revenue.
While Johnston also emphasized continued funding to fight homelessness, he admitted that spending on undocumented immigrants has decreased. The announcement has fueled debate over city spending priorities and accountability for Denver’s financial health.
