Mayor Mike Johnston has responded to the big changes City Council members want him to make to his proposed 2025 budget by offering up $7.3 million in reshuffled spending, including a boost to the city’s rent assistance program.
That’s roughly 25% of the value of budget changes council members asked for.
In a letter sent to council members Friday, the mayor outlined areas where he was willing to compromise with them after council members requested $29.1 million in changes earlier this month.
The mayor proposed $1.76 billion in general fund spending next year, just a 0.6% increase over the city’s 2024 spending in the wake of slowing sales tax growth.
Johnston has earmarked an additional $3 million for the city’s Temporary Rent and Utility Assistance program, or TRUA. In the draft budget he released on Sept. 12, Johnston dedicated $20 million for that program, which has become a critical resource as the city continues to see record rates of evictions for the second year in a row.
The had council requested $5 million more for TRUA among 22 changes it asked Johnston to make in its own letter earlier this month. The two sides tussled over TRUA spending last year, too, before ultimately compromising on a $29.1 million budget commitment for the 2024 budget.
Johnston acknowledged the program’s importance in his response Friday but also indicated he wanted to ensure it was the best use of resources in a tight budget year.
“We’re also committed to ongoing program evaluation to ensure our dollars go as far as possible, including an independent evaluation of the TRUA program by the People Lab at Harvard University,” Johnston wrote.
The mayor agreed to fully fund some requests, including kicking another $1.1 million into a business support fund to offset the impact of large projects like the construction of the East Colfax bus rapid transit line and paying $176,000 for new amenities for rideshare drivers who serve travelers at Denver International Airport.
But Johnston balked at many council asks.
In his letter, the mayor held fast to his rejection of further funding for the Denver Basic Income Project. Its pilot program has provided no-strings-attached cash to more than 800 people who were homeless over the last two years. He also said no to providing $2.75 million to acquire land that could be used as safe parking sites for homeless people living in recreational vehicles.
The council also has the ability to amend the budget in coming weeks. It will hold a public hearing on Oct. 28, during which residents can weigh in on the spending plan.
The city charter requires the council to vote on the finalized budget before the end of November.
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