November 13th 2024.
On Tuesday evening, the Denver City Council unanimously and quietly approved a $4.4 billion budget for the city next year. This finalized 2025 budget includes $1.76 billion in general fund spending, which is just a 0.6% increase from this year's budget for city services. According to Mayor Mike Johnston's administration, this makes it the most conservative budget for spending growth since 2011, not including the years impacted by the COVID-19 pandemic. The mayor's office attributes this to the need for belt-tightening due to a decrease in consumer spending, which makes up over half of the city's revenue through sales taxes.
In a statement, Mayor Johnston expressed his gratitude to the council for their support and acknowledged the economic realities that influenced the budget. He stated, "The city budget is a reflection of our values and priorities, and even in a slower economic environment, we have created a budget that will build a vibrant, affordable, and safe Denver." The administration's news release also highlighted their commitment to investing $60 million in affordable housing and $58 million in economic development, including support for local entrepreneurs and minority-owned businesses.
This budget marks the first time since 2021 that the council has approved a budget without any amendments. This was not for lack of trying, as the council spent hours last week debating and voting down eight different amendments. One of these amendments aimed to allocate $2.5 million to the Denver Basic Income Project, which provides no-strings-attached cash to people who are or have been homeless. Despite the council's request, Mayor Johnston had already given $2 million to the project in the 2024 budget and rejected their efforts to secure more funding this year. He stated that in a tight budget year, the city must focus on housing strategies with a high "return on investment," and that there was not enough conclusive research on the project's impact on housing.
During the budget amendment process, Councilman Kevin Flynn voted against the amendment to overrule the mayor, citing data from surveys of project participants. The data showed that even those in the control group, receiving only $50 a month compared to the $500 or $1,000 a month in other groups, had a housing rate of 43%. This was similar to the 45% rate for all survey respondents, regardless of their group. Flynn concluded that the payments were not the determining factor in participants' housing outcomes and voted against the $2.5 million amendment, which ultimately failed in a tied vote.
However, Mayor Johnston did make some changes to the budget outside of the amendment process, following council requests. These included adding $3 million to the city's Temporary Rent and Utility Assistance program, bringing the total to $23 million next year. This is an increase from the mayor's original proposal of $12.6 million and a result of pressure from the council during the budget amendment process in 2023. The administration also added $2 million to support legal help for people facing evictions and allocated $1.1 million for support grants for local businesses impacted by major infrastructure projects, as well as $1.5 million for youth programs.
During Tuesday's meeting, City Council President Amanda Sandoval acknowledged these changes and stated, "I really think that we worked diligently to incorporate community priorities into this year's budget, and I think we saw the result." She also expressed appreciation for the mayor's responsiveness to their recommendations and looked forward to continuing to work together to create a city where all Denverites can thrive. Stay informed with Colorado Politics by signing up for their weekly newsletter, The Spot.
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