Denver's 2026 budget cuts "to the bone"
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Denver Mayor Mike Johnston. Photo: RJ Sangosti/Denver Post via Getty Images
Denver Mayor Mike Johnston on Monday unveiled the city's $5.4 billion spending plan for 2026, calling it "the most conservative budget in 15 years."
Why it matters: The plan cuts city agencies "to the bone," the mayor said, but protects his key priorities and government services, including public safety, trash pick-up services and employee benefits.
Driving the news: Johnston began taking steps months ago to curtail spending after forecasts showed a decline in tax collections.
- He was forced to cut $200 million from the $1.7 billion discretionary spending account, a 6% dip and the first since 2011, excluding the pandemic years.
Zoom in: The brunt of the cuts affects city workers with the reduction of 957 jobs.
- The city expects to save $118 million with its hiring freeze, furloughs, layoffs and the elimination of vacant positions. The personnel actions closed 59% of the gap needed to reach a balanced budget.
- Other cuts included a cut in the Black Friday recreation pass discount, from 40% down to 30%, and a reduction in 311 help line hours, now covered by an AI bot named Sunny.
What he's saying: "There is nothing left to cut in these departments … without affecting these core services or [more] layoffs," Johnston said at a city hall briefing.
The big picture: The second consecutive year of workforce cuts came after "more than a decade of constant personnel growth," Johnston said, pointing the finger at his predecessor, Mayor Michael Hancock, for overspending.
- Johnston did not rule out layoffs or furloughs in 2026 if the economy continues to falter.
- He also added $182 million to the city's reserves to buttress against a possible recession.
The intrigue: In addition to cuts, Johnston proposed a plan to raise $5.7 million, in part by adding photo enforcement police vehicles to write more speeding tickets.
What's next: Denver City Council will dive into the plan next. The council's budget is one of the only ones expected to increase, up to $10.3 million from $9.7 million in 2025.
- Johnston is warning the council not to make major changes, saying any further reductions in agency budgets would lead to reduced services or more layoffs.
Editor's note: This story has been corrected to reflect the mayor's 2026 budget is $5.4 billion (not $5.9 billion).