The city of Boulder is projecting a budget deficit in 2027 driven largely by economic uncertainty tied to federal funding cuts, tariffs and rising inflation.

Threat level: Economists and city budget officials say Boulder is especially vulnerable because it relies on federal labs and the University of Colorado — two pillars of the local economy facing growing pressure.

Driving the news: City budget staff told City Council at a study session last week they expect a $6.5 million shortfall in 2027.

What they're saying: CU economics professor Robert McNown said the Trump administration's attacks on federal labs — including NOAA and the National Center for Atmospheric Research — threaten not just scientific research, but major Boulder employers.

• "It's quite apparent that Colorado is being picked on by the Trump administration … That filters down to Boulder," McNown said.

Between the lines: Boulder budget chief Scott Carpenter said the city lowered its projected revenue by $8.5 million between 2026 and 2027 largely because of federal uncertainty.

• He cited tariffs, inflation and instability tied to the conflict in Iran as growing economic risks.

The bottom line: McNown said the uncertainty created by Trump's "chaos of executive orders" could continue to weigh heavily on Boulder and Colorado's economy.

• "There are a variety of ways in which Colorado is being adversely impacted by what's going on in Washington," he said.

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Boulder's tax revenue has flattened for years, and the city was one of only a handful of major Colorado communities to post a year-over-year decline in sales tax revenue in 2025, according to CU Boulder economists.

• Officials pointed to Boulder's high cost of living, soaring housing prices and heavy concentration of tech jobs, a sector battered by layoffs in recent years.
• The city has also struggled with slower consumer spending and weakening retail growth.

Closing the gap will require a 4% spending cut across all departments, with an emphasis on permanent reductions.

• The city has been under a hiring freeze since last summer, and while Boulder City Manager Nuria Rivera-Vandermyde said no new layoffs are planned, she warned that "a hard conversation" is coming about cuts to programs and services.

Zoom out: Brian Lewandowski, executive director of the business research division at CU's Leeds School of Business, said inflationary pressures linked to the conflict in Iran emerged rapidly and would not have been factored into Boulder's revenue projections last budget cycle.

• "This is something that wasn't on our radar even three months ago, but now it poses a pretty great risk to the health of the overall economy," he said.
• Colorado gas prices rose 9.3% from January to May, Lewandowski said, increasing costs for city operations while squeezing local consumer spending.

The intrigue: The arrival of the Sundance Film Festival could provide an economic boost next year, but city officials say they're not baking that revenue into projections.

• "We are taking a realistic approach in year one of Sundance," Carpenter said.

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⚖️ CU Regent Wanda James is suing her fellow regents for retaliation, discrimination and free-speech violations after the board censured her 10 months ago. (Daily Camera 🔑)

🤑 Forge Nano, an advanced materials company, has reached a $1.6 billion valuation, making it CU Boulder's 11th privately held company valued at $1 billion or more. (Daily Camera 🔑)

✍️ In addition to granting clemency to Tina Peters, Polis pardoned 35 people and commuted the sentences of nine others, including a man convicted of felony murder in connection with a Rollinsville shooting. (Colorado Sun)

📚 Colorado libraries reported 43 challenges to their books, materials, events and exhibits last year, a 25% decrease from the previous year, according to state data. (Denver Post 🔑)

Union workers at REI are urging customers to boycott the outdoor retailer's anniversary sale this week — including in markets like Colorado.

State of play: The boycott comes after the co-op and its union failed to reach a contract agreement last month, with the union calling management's latest offer "unacceptable."

Catch up quick: Since 2022, 11 REI stores nationwide have voted to unionize. None of Colorado's 11 locations, including the Boulder store, have done so.

• Demonstrations supporting the boycott were still being encouraged at non-union stores, UFCW 3000 spokesperson Rich Smith told Axios.

The other side: A local REI worker posted a video on YouTube asking shoppers not to boycott.

What's next: The union is imploring shoppers to boycott REI through May 25, the final day of the retailer's anniversary sale.

Tell a shopper

Those hoping Trail Ridge Road in Rocky Mountain National Park might be open over Memorial Day weekend are in for a cold truth.

The latest: The National Park Service reported more than a foot of snow in some areas of the park yesterday morning, according to a Facebook post.

• Due to the snowfall and an uncertain forecast, park officials said it is unclear when Trail Ridge Road will fully open.

Zoom out: While not ideal for travel plans, the much-needed snowfall could help the Colorado mountains recover from a dry winter.