Latest news with #budgetshortfall
Yahoo
12 hours ago
- Business
- Yahoo
Denver, facing over $200M budget gap, will begin layoffs on Aug. 18
DENVER (KDVR) — Denver city and county employees will see layoff notifications during the week of Aug. 18, according to the mayor's office, which cited budget woes. 'These are not easy days, and these are not easy decisions,' wrote Mayor Mike Johnston to the city and county employees in a letter sent Tuesday. 'Every role in this city matters, and every person in those roles has contributed to our city in meaningful ways.' Denver mayor announces furloughs, $250M budget shortfall over next 2 years The number of impacted employees was not shared. In May, the Denver Mayor's Office said that city employees would experience furloughs in the face of a $50 million revenue gap and $200 million deficit. He also noted that the city had seen a 0.3% revenue growth, which is far below the previous 5% growth seen by the city before 2024. 'As I shared in March, the continual slowdown in the economy we are seeing locally and nationally has deeply affected the city budget, and we need to build a budget that fits within the revenues we have,' Johnston wrote to city employees on Tuesday. Johnston said he is still committed to 'protecting core city services and delivering on residents' top priorities while preventing layoffs in every instance possible.' The announcement also follows a vote by the Denver Career Services Board to eliminate the seniority-based layoff system in favor of a merit-based approach. At the time, no layoffs had been announced, but workers rallied to decry the then-proposed change to layoffs. Johnston said the layoff notices will all be made within the one week beginning Aug. 18. Employees will have their last working day on the same day they are notified of their layoff, and then will be given 30 calendar days of paid administrative leave. During that time, salary and benefits, including time-off accruals, will still be received. The official separation date will be 31 calendar days after the notification is received, the city said. Medical, dental and vision coverage will continue through Sept. 30 for separated employees. City announces severance packages for August layoffs The city outlined severance packages based on employees' lengths of service with the city. The city also said that the severance will be in addition to the 30 days of paid administrative leave. Length of Service Severance Post probation, less than 1 year 1 pay period (2 weeks of pay) 1 year to less than 5 years 2 pay periods (4 weeks of pay) 5 years to less than 15 years 3 pay periods (6 weeks of pay) 15 years or more 4 pay periods (8 weeks of pay) After employees sign the severance agreement, they will receive the payment within 14 days after their employment officially ends. Employees who are on probation or who are retiring, as well as on-call employees, are not entitled to severance, the city noted. Denver board votes to eliminate seniority-based layoffs, will now consider merit 'In addition, the severance package will also include a stipend equal to one month of the city's share of medical insurance,' the city stated in its announcement. 'This will enable any employee to keep health care coverage for at least 60 days after notification of a layoff. Other supports for Denver employees during layoffs The city said the Department of Economic Development and Opportunity's Workforce Development division has created an Employment Transition Assistance team for the Denver layoffs. 'This team will support impacted employees from the day of separation, offering personalized support, job search and training opportunities, help with unemployment filings and wellness and mental health resources,' Johnston wrote. He also noted the city has published a layoff separation guide on the city's website, available here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Solve the daily Crossword
Yahoo
23-07-2025
- Business
- Yahoo
Pueblo mayor pitches sales tax increase, changes to half-cent criteria for 2025 ballot
Pueblo Mayor Heather Graham advocated for a grocery tax several months ago, but she acknowledged during a July 21 Pueblo City Council work session that the proposal to generate more revenue has not been popular with city voters. Instead of a grocery tax, Graham is now advocating for a ballot initiative that would increase the city sales and use tax rate from 3.7% to 4.7%. The city estimates a 1% sales tax increase would generate over $26 million annually — more than twice the estimated revenue of a grocery tax. Funds generated by a sales tax increase would alleviate a multi-million dollar budget shortfall while funding city programs, infrastructure maintenance, new amenities, pools, public safety, roads, and "quality of life services," according to a July 21 presentation by Graham and City Attorney Carla Sikes. The sales and use tax rate increase was proposed with another ballot initiative to change the city's half-cent sales tax criteria ordinance, which Graham said could help bring new amenities like a Buc-ees, Costco, or aquatic center to Pueblo. The updated criteria ordinance would add economic catalyst projects, projects to prevent economic leakage, and place-making projects to the list of initiatives eligible for funding through the city's half-cent sales tax. According to Graham and Sikes' presentation, economic catalyst projects are projects that substantially increase city sales tax revenue from "outside dollars"; projects that prevent economic leakage are those that attract businesses that city residents currently leave town to patronize; and place-making projects are those that "improve quality of life" while also bringing in revenue from outside the community. Pueblo City Council previously had the opportunity to enact changes to the criteria ordinance without approval of a ballot initiative on June 23, but rejected it in a 4-3 vote. Dennis Flores, Roger Gomez, Joe Latino and Regina Maestri were the four Pueblo City Council members who voted against changing the half-cent sales tax criteria. "We heard from PEDCO (the Pueblo Economic Development Corporation), our economic development partners, that the criteria ordinance was being changed a little bit too much," Graham told council members. "You wanted to see it go to the vote of the people, so here it is." If approved by city council, the 1% sales tax increase and changes to the half-cent sales tax criteria are scheduled to be on the November 4, 2025, ballot. Council's next regular meeting is on July 28. The Slab reopens: 'The Slab' is back. Here's what to know open the upcoming re-opening ceremony in Pueblo Pueblo Chieftain reporter James Bartolo can be reached at JBartolo@ Support local news, subscribe to the Pueblo Chieftain at This article originally appeared on The Pueblo Chieftain: Why a sales tax increase could be on the 2025 ballot in Pueblo Solve the daily Crossword
CBS News
21-07-2025
- Politics
- CBS News
Denver Mayor Mike Johnston's "State of the City" address planned for Monday night
Denver Mayor Mike Johnston will deliver his State of the City address Monday evening, outlining the challenges his administration faces, the progress it has made, and what it hopes to achieve moving forward. Two years ago, Johnston set a goal of moving 1,000 unhoused people off the streets and into housing. He said that goal was reached -- and more -- with 5,000 people now off the streets and street homelessness ended for veterans in the city. Still, Johnston said more work is needed. In a one-on-one interview with CBS News Colorado, the mayor acknowledged the difficulty ahead, especially as Denver stares down a $250 million budget shortfall over the next two years -- a gap that could lead to layoffs and cuts to city services. "The next phase of the work is really about those individuals and how we help connect them to services -- to get clean, to get mental health supports, and then to get back up," Johnston said. In addition to addressing homelessness, Johnston is also expected to discuss affordability in Denver during his speech. The State of the City address begins at 6 p.m. at the Seawell Ballroom. You can watch the entire address at after it airs.
CBS News
19-07-2025
- Business
- CBS News
One of Colorado's biggest fire departments forecasts $500 million shortfall over next decade: "It's a big amount"
South Metro Fire Rescue, which serves nearly 600,000 residents in Arapahoe, Douglas and Jefferson counties, is forecasting a $20 to $30 million shortfall in 2026, followed by yearly budget shortfalls of $50 million a year for the next decade. The fire protection district says state property tax relief measures are forcing them to consider seeking tax increases or reductions in service. "It's a big amount," said Jim Albee, chairman of the board that oversees the nearly 800 member fire department. "Every dollar counts," said Albee who added, "we are going to evaluate every dollar." Albee and the department say their shortfalls are brought about by years of rising costs, inflation, increasing calls for service and new state legislation that reduces property taxes and caps property tax rates. The department derives 80% of its revenue from property taxes, according to Albee. But with 80% of the department's budget going to employee salaries and benefits, the department will likely reflect on its most recent contract, providing firefighters with a 10% salary increase this year, followed by increases the next two years that will bring the three-year salary increases to between 17.5% and 19%. By comparison, the Denver Fire Department agreed in May to a tentative two year contract with the city calling for a 5% increase next year and another 5% increase the following year. Albee said the larger salary increases are to make up for the previous contract, which granted 8% salary increases over three years. To address the looming budget shortfalls, SMFR is considering three scenarios: - Asking district residents to vote to increase their property taxes, something Albee says has not happened in 20 years - Seeking a .5% sales tax within the district which would generate an estimated $50 million for South Metro each year - Cutting services, which might lead to higher response times "We will look at everything," said Albee. He said preliminary surveys conducted by the department have so far indicated district residents are most in favor of the new sales tax, rather than voting to increase their property taxes or see fire service diminished with increased response times. The department has been widely known in the fire service as being "best in class," offering equal or higher salaries than other similar sized departments, and health and wellness benefits that are top tier. SMFR has on staff three strength and conditioning coaches, with the lead strength and conditioning coach earning $111,000 annually. Also on staff are: A chief of human performance who earns $239,000 An athletic trainer who makes $104,000 An e-learning specialist who also makes $104,000 There's also a cognitive performance coach, a health and wellness officer, a physical therapist and a wellness doctor who is paid $250,000 per year. Albee said he considers it "a duty of this department to make sure the people are taken care of as well as possible and we're taking care of first responders as well as they're taking care of us. It's what the market informs us is what's needed and necessary to attract and retain the talent we need to serve our community," said Albee. The South Metro board chairman said overall, these positions essentially are "cost neutral" as they pay for themselves by helping prevent injuries that would equate to lost time, or by helping rehabilitate injured firefighters and get them back to work faster than would otherwise be possible. But cutting benefits is on the table, said Albee, who said all expenses are being evaluated. He said by early August the department will begin making decisions about what direction -- or directions -- it needs to go to address its budget problems.
CBS News
18-07-2025
- Politics
- CBS News
Denver Mayor Mike Johnston reflects on homelessness, budget shortfall and future plans
Denver Mayor Mike Johnston sat down with CBS Colorado on Thursday to reflect on his first two years in office and discuss what he would still like to accomplish in the next two years of his first term. Johnston touted his work on homelessness: "There are no encampments in Denver. There are no tents downtown," he said. "We've gotten 5,000 people off the streets. We became the largest American city to end street homelessness for veterans. Those for us are major milestones." At the same time, the mayor acknowledged there is still work to do. "Yes, we still have a couple hundred folks who are left on the streets. They are mostly our highest acuity individuals. They have the most significant mental illness, the most significant addiction. They're not living in communities. They're not living in encampments. They're just wandering around and using, and sometimes passing out. The next phase of the work is really about those individuals and how we help connect them to services to get clean, to get mental health supports and then to get clean and get back up." Johnston is staring down a budget shortfall of $50 million for the rest of 2025 and a $200 million shortfall for 2026. City employees have begun taking furloughs, and city workers are preparing for the potential of layoffs beginning in August. "Our goal is always to avoid any impact on core public services," said Johnston when asked what Denverites can expect with the city facing such a big deficit. "We're going to keep officers on the street. We're going to keep trash getting picked up. We're going to keep our parks and rec centers clean and open." "Do you think it's possible to balance the budget and keep all of those things?" asked CBS Colorado. "We are never going to keep everything, but what we've done with each department is said, 'What are the core public services we have to deliver? And what are the core things we need to deliver city-wide? And what are the things that might have been nice to have 10-15 years ago that might not be so essential to have right now, and how do we find a way to pare those back?'" The mayor also hinted that an announcement regarding the Broncos and potential plans for a new stadium would be coming soon. "I'm hoping in the next few weeks," he said. The Broncos' current contract at Empower Field at Mile High expires following the 2030 season. "Over my dead body will the Broncos leave Denver. I would fire myself." When asked what the next two years look like and what a successful first term would entail Johnston said that housing affordability and cost of living would continue to be a concern, "We want to still keep fighting to make sure that everyone who works in the city can afford to live in the city, so that we don't have school teachers that are saying, 'I'd love to stay in Denver, but I have to move back home to Kansas or Oklahoma because I can afford to live there.' Those are the ones we want to keep fighting for."
