Denver Mayor Mike Johnston today announced the city’s financial outlook for 2025 and 2026, and the news isn’t good.

The city now projects $50 million less revenue in 2025,  and a $200 million gap next year, the first non-pandemic revenue drop in more than 10 years.

“The economic downturn and volatility brought on by President Trump is a major challenge facing Denver,” said Johnston. “This uncertainty, coupled with declining revenues and significant growth in the cost of city government over the past decade, require us to immediately address the city’s structural budget deficit while protecting essential services and positioning Denver for economic growth in 2026 and beyond.”

The city is taking immediate action following the economic outlook. There is now a hiring freeze, and most city employees will take furlough days between June 1 and Dec. 31, based on salary levels. The furloughs won’t apply to the police, fire, and sheriff departments or 911 personnel.

In addition, there will be two citywide furlough days when the city will be closed for business: Aug. 29 and Nov. 28.

The hiring freeze starts May 22 for future job openings, not including uniformed, 911, or airport personnel. The freeze is expected to last through at least Sept. 15, the deadline for the mayor to submit his proposed 2026 budget to the Denver City Council. Layoff and other cuts are also possible in the months ahead,

In a news release, the mayor’s office cited the University of Michigan’s consumer sentiment index which fell below levels seen during the COVID-19 pandemic, signaling what the release calls widespread expectations of inflation and recession.

The capital funds, which the city says are backed by more stable revenue sources like property taxes, are in better shape. Those funds are used to invest in infrastructure projects like the National Women’s Soccer League stadium site and National Western Center expansion.