Denver to Start Layoffs Aug. 18 Amid $200M Budget Gap

Denver City and County Employees Face Layoffs Amid Budget Challenges

Denver city and county employees are preparing for a difficult week as layoff notifications are expected to be delivered during the week of August 18. The mayor’s office has cited ongoing budget challenges as the reason behind these decisions, emphasizing that the situation is not easy for anyone involved.

In a letter addressed to city and county employees, Mayor Mike Johnston expressed his deep concern about the impact of these layoffs. “These are not easy days, and these are not easy decisions,” he wrote. He also acknowledged the vital roles each employee plays in the city and their contributions to its development.

The city is currently facing a significant budget shortfall, with an estimated $250 million deficit over the next two years. This comes after earlier reports indicated a $50 million revenue gap and a $200 million deficit. Despite a slight 0.3% growth in revenue, this figure falls far short of the previous 5% growth seen before 2024.

Johnston highlighted that the economic slowdown both locally and nationally has had a profound effect on the city's finances. “We need to build a budget that fits within the revenues we have,” he stated. While the mayor remains committed to protecting core city services and meeting residents’ top priorities, he stressed the importance of avoiding layoffs whenever possible.

This announcement follows a recent decision by the Denver Career Services Board to replace the seniority-based layoff system with a merit-based approach. Although no layoffs were announced at the time, workers expressed strong opposition to the proposed change.

Layoff notices will be distributed during the week of August 18, with all affected employees receiving their last working day on the same day they are notified. They will then be granted 30 calendar days of paid administrative leave. During this period, employees will continue to receive their salary and benefits, including time-off accruals. The official separation date will be 31 calendar days after the notification is received, and medical, dental, and vision coverage will remain active through September 30 for those who are separated.

Severance Packages and Additional Support

The city has outlined severance packages based on the length of service for each employee. These packages will be provided in addition to the 30 days of paid administrative leave. After signing the severance agreement, employees will receive their payment within 14 days of the official end of their employment. However, employees on probation, those retiring, or on-call workers are not eligible for severance.

In addition to the severance package, the city will provide a stipend equal to one month of the city’s share of medical insurance. This will help ensure that employees can maintain health care coverage for at least 60 days after being notified of their layoff.

Resources for Affected Employees

To support impacted employees, the Department of Economic Development and Opportunity’s Workforce Development division has established an Employment Transition Assistance team. This team will offer personalized support from the day of separation, including job search assistance, training opportunities, help with unemployment filings, and resources for wellness and mental health.

Mayor Johnston also mentioned that the city has published a layoff separation guide on its website, which provides detailed information and guidance for affected employees. This resource is intended to assist individuals throughout the transition process.

As the city moves forward with these changes, it is clear that the impact on employees will be significant. However, the city is making efforts to provide support and resources to help those affected navigate this challenging time.