Proposed $45 million cut to Denver's budget to pay for illegal immigration crisis advances

A panel of councilmembers has unanimously advanced Denver Mayor Mike Johnston's proposed $45 million in budget cuts — dollars the administration intends to use to pay for its response to the city's illegal immigration crisis.

The proposed budget cuts' next stop is the full City Council.    

The budget cuts include a hiring freeze and service reductions.

Early in the crisis, Denver officials decided the city would assume the responsibility to temporarily house, feed and transport arriving immigrants. That response is expected to cost a total of $90 million this year. At last count, the city has helped almost 41,000 immigrants.

To come up with the money, Johnston asked city agencies to find up to 15% in budget reductions. In addition, the Denver Recreation Centers cut operating days and the Department of Motor Vehicles implemented "rotating closures." The city also cut back on flower planting this year.

The council's Finance and Governance Committee approved rescinding $5.8 million in capital costs, as well as $36.4 million in budget reallocations. 

"We really took a similar approach to what we do every year as part of the budget as we worked with agencies as we evaluated the reductions that they were proposing," budget director Stephanie Adams told the committee. "We worked with agencies and really talked to them about their core services and mission and tried to mitigate any reductions we thought would have a significant impact on either of those things."

Officials said they are committed to ensuring Denver residents won't notice any of the proposed cuts and services that have already been affected would go back to normal operation by the summer. 

Under Johnston's proposal, several projects — such as the Alameda Avenue underpass — are being delayed, prompting District 7 Councilwoman Flor Alvidrez to say the current underpass is in "terrible condition."

Adams said the $2 million found by the Department of Finance comes from a city match for a federal grant that was not received. The project would also still be funded through money from the Denver Regional Council of Governments, Adams said.  

Other concerns revolved around how long Johnston's so-called "newcomers" program would last and how it would be funded next year. Adams said some of that is still up in the air since some money was found from one-time sources and budget actions this year may be applied to 2025, such as the airport paying for a public safety recruit class and using the 911 trust fund to pay 911 operators.  

"It just depends on the funding source — if it's a one-time source that we had the unique opportunity to use in 2024 or if there are some additional things we've learned and continue to have as part of 2025," Adams said. 

The budget process for 2025 is slated to begin in less than two weeks, with initial planning discussions beginning on April 29. The formal process will begin in earnest in late summer and early fall, with a final budget typically approved in November.