Armstrong Economics Yet another blue city is experiencing a substantial deficit due to government overspending. Denver Mayor Mike Johnston declared in May that the city was facing a $50 million budget deficit for the current fiscal year that is expected to explode to $200 million by 2026.
The city’s general fund reserves have declined from $391 million in 2022 to $299 million in 2024. The city plans to cut the general fund spending by 12%, a steeper cut than what was experienced during the COVID pandemic. The city has already implemented a hiring freeze for public workers and layoffs are expected. “We will have to look at layoffs,” Johnston said. “We do not envision a scenario where it’s possible to right-size this budget without that impact on personnel.”
Denver spent $356 million on migrants, and the mayor plans to continue fighting deportation efforts. All of these sanctuary cities are experiencing steep deficits, and they act perplexed as to why. Roughly 45,000 migrants have made their way to Denver since 2022, according to the Common Sense Institute (CSI). The local healthcare system cannot accommodate the large influx, but the city has spent $49 million on migrant healthcare after 8,000 migrants recorded around 20,000 visits to Denver Health alone last year. Doctors are calling the strain on the system a “humanitarian crisis” that has pushed the state hospital system to a breaking point. The hospital was forced to remove 15 beds in 2023 after finishing FY2022 $22 million above budget.
…
Read Full Article Here…(armstrongeconomics.com)
Home | Caravan to Midnight (zutalk.com)
Live Stream + Chat (zutalk.com)
Be First to Comment