Denver to furlough thousands of workers amid coronavirus
DENVER (AP) — Denver Mayor Michael Hancock said Thursday that thousands of city employees, including himself, will be furloughed for eight days this year to help close what is expected to be a $226 million budget gap caused by the coronavirus, joining mayors across the country that have made the same move or are thinking about it.
“This pandemic is not only a public health crisis, it is also fueling an economic crisis the likes of which we have not seen since the Great Depression,” Hancock said at a news conference.
Denver has seen steep declines in sales, lodging and other taxes since the pandemic hit Colorado two months ago, and the state is still under a safer-at-home order that has placed restrictions on businesses.
City leaders say the drop in tax revenue is affecting the fund that pays for police and fire services, as well as street maintenance.
American cities, from Puyallup, Washington, to Miramar, Florida, have also furloughed employees to save money in the face of dire economic forecasts.
In April, Los Angeles Mayor Eric Garcetti released a spending plan he called “a document of our pain” that includes service cuts and furloughs for nearly 16,000 workers. Under the proposal, city employees would take 26 furlough days, the equivalent of a 10% pay cut, in the coming year.
The spending reductions in Los Angeles are likely to be a sign of what’s to come at city halls across the nation, as jobless lines grow and local treasuries see steep drops in tax revenue.
Denver's planned furloughs, which do not apply to uniformed employees like firefighters, police officers and sheriff’s deputies, will save the city about $16 million. The city also is reducing travel, hiring and purchases, and it is asking departments to cut 7.5% from their budgets.
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