Denver officials proposed millions more in cuts for next year’s budget Tuesday alongside even more unpaid employee furloughs and smaller investments in social services and changes to law enforcement practices.
And that’s the rosiest projection available, Denver Mayor Michael Hancock and Chief Financial Officer Brendan Hanlon agreed. Should coronavirus numbers begin shooting up again, even more cuts will have to be made and the city would likely dive deeper into emergency reserves.
That makes it all the more important for Denverites to continue socially distancing themselves, wear masks, wash their hands often and take additional precautions to curb any possible uptick of the virus, Hancock said.
Hanlon’s estimates showed that another resurgence could cost Denver tens of millions of dollars on top of what is already the most challenging budget he’s ever devised.
“Having deployed… over $90 million of our reserve fund, the last thing we need is to go back,” Hancock said during a news conference.
In all, Hancock’s 2021 budget projects a $1.33 billion general fund, down 10.6% from the original 2020 budget, which tanked sharply in March as the coronavirus pandemic hit Denver. The nearly 800-page document now goes to City Council, which will hold budget hearings, tweak the document and adopt a final version in November.
“I wish 2021 looked better,” Hancock said. “The reality is 2021 is just as uncertain as the last months have been because the pandemic looks uncertain.”
Shutdowns sparked by COVID-19 caused a budget shortfall this year of about $220 million, Hanlon said, and the expected revenue gap next year is estimated at $190 million.
While the proposal does not include layoffs, Hanlon said employees will be asked to take between six and nine unpaid furlough days to save an estimated $12 million. Employees making less than $52,000 a year will take six furlough days while mayoral appointees will take nine, said finance department spokesperson Julie Smith.
Earlier this year, the city’s department heads were asked to propose 11% in budget savings for next year, many of which were accepted for the budget draft.
Off the bat, the city anticipates about $39 million in savings by keeping more than 400 vacant positions unfilled, Hanlon said. Other reductions include $14.5 million in general fund support to the capital improvement program, $9.6 million in fleet replacement, $7 million from fewer new hires for police and fire departments and a $3.2 million in reduced overtime for public safety agencies, he said.
In addition, the city expects about $7 million from technology equipment, project and licensing savings, $4.5 million from vacancies in the Sheriff’s Department and $3.2 million from keeping the jail population low, Hanlon said.
While the proposed budget is rife with cuts, there are some investments as well
Many have called for defunding the Denver Police Department, but Hancock refuted what he called a false binary choice between keeping the public safe and transforming law enforcement. The 2021 budget does both, he said.
The administration is planning an additional $11.5 million for behavioral health and criminal justice reform. It also includes an extra $1.5 million for homeless encampment outreach, services and housing and $5 million for a new homeless shelter.
Hanlon said he doesn’t expect to delay any of the city’s major projects. Often they use a dedicated cash stream that can’t be diverted anyway, and anyway that work will help stimulate the local economy.