(COLORADO SPRINGS) — Colorado Springs Mayor Yemi Mobolade hosted his monthly briefing on Wednesday, July 23, and addressed the city’s forecasted $11.5 million budget shortfall.
To address the issue, the city is waiting to hire for certain jobs and delaying some purchases, like equipment replacements. The city is working closely with its departments to help make these decisions.
“Cities of all sizes, in red and blue states alike, are facing similar challenges. We’re not alone in this moment, and while we’re not immune to economic headwinds facing cities and states across the country, we’re also not powerless,” said Mobolade.
He emphasized many times that the top priority is maintaining public safety services.
“We, and I can say this for every city department, we run on a very tight budget anyway compared to most cities our size, and for both police and fire, you know, we’re not staffed to the size city that we are. So, our goal for both police and fire is to maintain the service that we’re providing today,” said Randy Royal, the Colorado Springs Fire Chief.
This is not the first time the city has faced a budget shortfall. In 2023 it was about $9 million,
and in 2024 it was about $4.5 million.
“We are working hard to protect essential services around public safety, infrastructure and parks, while we’re tightening the belt in other areas,” said Mobolade.
The city said people could see minimal impacts or cuts to services like Keep it Clean COS.
“We have to have a balanced budget every year, and so we will take the steps necessary to have our spending not exceed that revenue. So, that’s why we’re making those cuts specifically, so we can balance the budget this year,” said Charae McDaniel, the Colorado Springs Chief Financial Officer.
The mayor attributed part of the shortfall to lower consumer spending, since 60% of the city’s general fund comes from sales taxes.
“Consumer confidence is not just a national issue, it’s a local one as well… [as well as] high interest rates. Interest rates remain high, and that is truly having a chilling effect on our economy. Lastly, we’re also feeling the ripple effects of the global economic factors, especially around tariffs,” said Mobolade.
About The Author
