Denver Faces Uncertainty in Closing $200 Million Budget Gap

Denver Faces Uncertainty in Closing $200 Million Budget Gap

Summary
Denver’s recent budget cuts, including the elimination of 928 city positions, are aimed at addressing a substantial $200 million budget shortfall for 2026. While the city has released information on the personnel changes, the full strategy for closing the budget gap has not been disclosed, leaving some key questions unanswered.
The city has indicated that the personnel cuts will account for $100 million, or half of the total budget gap. However, the details for how the remaining $100 million will be saved are still to be revealed. Many hope that these questions will be addressed by September 15, 2025, when the full 2026 budget proposal is presented to the City Council.
What We Know So Far
The breakdown of the 928 positions being cut is as follows:
169 direct layoffs: These are filled positions that have been eliminated.
666 vacant positions: The vast majority of the cuts are coming from vacant roles that will not be filled.
92 positions: These will be transferred off the city’s General Fund to other funding sources.
In terms of departmental impact, the largest number of positions eliminated came from the Department of Transportation and Infrastructure, which shed 160 positions (nearly 9% of its staff). The Denver Public Library followed with 99 positions cut, about 11% of its workforce. While these agencies saw the biggest numerical cuts, some smaller departments experienced the steepest percentage losses. For example, the Agency for Human Rights and Community Partnerships lost nearly 38% of its positions.
Unanswered Questions
As the city awaits the full budget proposal, several key questions remain unanswered. The public is looking for clarity on:
Specific operational cuts: While the city has mentioned reducing operational costs, such as trimming spending on vendors, supplies, travel, and training, the specifics of these reductions have not been detailed. How will these cuts affect the quality of city services and daily operations?
Delayed projects: The city has hinted at postponing major capital and equipment purchases, such as IT upgrades and vehicle acquisitions. Which specific projects will be delayed, and what will be the long-term impact on the city’s infrastructure?
Programmatic changes: The city has announced plans to scale back pilot initiatives and reduce discretionary grants. Which programs will be affected, and how will these changes impact communities that rely on these services?
The full 2026 budget proposal is expected to provide a comprehensive roadmap for how Denver will navigate the remaining $100 million of the budget gap, offering a clearer picture of the financial and service changes residents can expect.