Colorado Springs is reducing staff by approximately one percent, implementing scheduled furloughs for city employees, and closing the Meadows Park Community Center as part of cost-saving measures in anticipation of a $31 million budget shortfall. That's an increase from the original estimate of an $11 million shortfall estimated in July.
“People are just not spending money and the city's revenues are directly connected,” Colorado Springs Mayor Yemi Mobolade said, adding that a slowing local economy has put the city in this tough position.
One percent of the city's staff amounts to about 38 positions, and a combination of layoffs and eliminating open positions.
“So when you're not buying homes, when you're not buying appliances, and when the building community is saying, ‘Let's pause, let's wait and see,' that has a direct impact on my ability to deliver those quality services," like public safety and infrastructure, Mobolade said.
60 percent of the city's budget comes from sales and use taxes.
The mayor's office is also proposing a cut to spending on certain maintenance of and upgrades to city-owned facilities and to skip cost-of-living and performance-based raises in 2026 for many employees. For the furlough program, many employees will have 5 to 7 pre-scheduled unpaid furlough days during 2026.
Mobolade said the measures are proactively aimed at protecting city-funded core services, like public safety and infrastructure. He called the cuts a heavy decision.
“When you have to look somebody in the eye and say, today's your last day or tomorrow's your last day, that's difficult. I could feel a heaviness, man,” Mobolade said. “I'm getting emotional. I could feel a heaviness with my leaders on Friday (when the cuts were announced). That was just present because these are families, these are people's lives."
Mobolade said this slowdown is due in part to high interest rates and low consumer sentiment. Many other cities, along with Colorado Springs, are facing shortfalls around the state, mostly due to below-projected sales tax revenues.
CPR's Caitlyn Kim contributed to this reporting.
