Mayor Mike Johnston has announced Denver’s financial outlook for 2025 and 2026, outlining how the city will manage a tough economic period while continuing to focus on essential services and future growth.

Due to national economic uncertainty—like rising costs, low consumer confidence, and reduced spending—Denver is expecting lower tax revenues. The city anticipates $50 million less in revenue for 2025 and a $200 million shortfall in 2026, marking the first significant drop in over ten years (outside of the pandemic).

To help close the gap, Denver is taking several steps to reduce spending and stabilize the budget:

Hiring Freeze: Most new city hiring will be paused through at least mid-September, except for key roles like police, firefighters, 911 operators, and airport workers.

Employee Furloughs: Between June 1 and December 31, most city employees will take between 2 and 7 unpaid furlough days, depending on their salary level. Higher earners and senior staff will take more days. Essential workers—like police, fire, sheriff, and 911 staff—will not be furloughed.

Citywide Closures: Denver will close most city offices on two furlough days—Friday, August 29 (before Labor Day) and Friday, November 28 (after Thanksgiving).

Despite the challenges, Mayor Johnston emphasized that the city is still investing in long-term projects that create jobs and grow Denver’s economy. These include downtown revitalization, the National Western Center expansion, and the new National Women’s Soccer League stadium. These projects are funded through more stable sources, like property taxes, and aren’t affected by drops in sales tax revenue.

“We’re tightening our belts today to protect essential services and keep Denver on strong footing for the future,” said Mayor Johnston. “I’m deeply grateful to our city employees for their continued dedication during this time.”

While the city adjusts to these economic headwinds, the focus remains clear: protect what matters most and build a stronger, more resilient Denver.

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