By Brandon Richard | Denver7
DENVER — Denver city leaders are preparing to make “substantial” layoffs in order to deal with a massive budget deficit.
In May, Denver Mayor Mike Johnston announced the city was projecting a $50 million budget deficit this year and a $200 million budget deficit next year. Johnston said his administration must consider layoffs to help the city balance next year’s budget.
“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.”
On Wednesday, city leaders were more definitive about layoffs.
“They are absolutely happening and they’re going to be substantial,” said Karla Pierce, a city employment attorney.
The city has not officially announced any layoffs, but Wednesday’s acknowledgment is a significant development as the city looks for ways to balance next year’s budget.
City officials said it’s still too early to know how many workers will be laid off. It could depend on whether a proposed personnel rule change is adopted.
The city wants to move away from a system that protects workers who have been employed by the city for a long time to a merit-based system.
Under the current rule, senior employees can “bump” less-tenured employees to avoid being laid off. Kathy Nesbitt, executive director of Denver’s Office of Human Resources, said the current rule causes significant delays in the layoff process.
“It also fails to ensure that we have the very best talent,” Nesbitt said.
The proposed new rule aims to evaluate employees based on four key criteria: performance ratings, skills, abilities, and length of service. Nesbitt said this approach will help the city retain the most talented and capable employees while meeting budget reduction goals. It would also make it easier to lay off senior employees.
Many long-time city employees told Denver7 they feel betrayed by the proposed rule change.