Mayor Mike Johnston has responded to the major changes city council members want him to make in his proposed 2025 budget by offering $7.3 million in reallocated spending, including an increase to the city’s rental assistance program.
That is about 25% of the value of the budget changes that council members requested.
In a letter sent to council members on 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 spending next year, an increase of just 0.6% over the city’s 2024 spending due to slowing sales tax growth.
Johnston has set aside another $3 million for the city Temporary rental and utility assistance program, or TRUA. In the draft budget he released on September 12, Johnston spent $20 million on that program, which has become a crucial resource as the city continues to see record eviction rates for the second year in a row.
The city had requested an additional $5 million for TRUA, among the 22 changes Johnston requested in his own letter earlier this month. The two sides also feuded over TRUA spending last year before ultimately compromising on a $29.1 million budget commitment for the 2024 budget.
In his response Friday, Johnston acknowledged the importance of the program, but also indicated that he wanted to ensure that resources were used in the best possible way in a tight budget year.
“We are also committed to ongoing program evaluation to ensure our dollars go as far as possible, including an independent evaluation of the TRUA program by Harvard University’s People Lab,” Johnston wrote.
The mayor agreed to fully fund a number of requests, including putting an additional $1.1 million into a business support fund to offset the impact of major projects such as the construction of the East Colfax rapid bus line and paying $176,000 for new amenities for drivers serving travelers at Denver International Airport.
But Johnston declined many of the council’s questions.
In his letter, the mayor stood by his rejection of further funding for the Denver Basic Income Project. The pilot program has provided no-obligation cash to more than 800 people experiencing homelessness over the past two years. He also said no to providing $2.75 million to acquire land that could be used as safe parking for homeless people living in recreational vehicles.
The council also has the option to amend the budget in the coming weeks. A public hearing will take place on October 28, where residents can give their opinion on the spending plan.
According to the city charter, the council must vote on the final budget before the end of November.
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