Colorado District 1 GOP Raises Alarm Over Denver’s Proposed 10% Budget Cuts and Bond Rating Risks
DENVER, CO – The Colorado District 1 Republican Party is deeply troubled by recent report from the watchdog group “Do Better Denver” indicating that Mayor Mike Johnston will announce a 10% budget cut across all city departments on April 24, 2025. This drastic measure, driven in part by nearly $1 billion in annual costs to service Denver’s current bond initiatives, threatens essential services such as public safety, infrastructure, and education. Even more concerning is the strong potential for a bond rating downgrade—similar to what occurred in Chicago—which could escalate debt servicing expenses and plunge the city into financial instability cycle.
The proposed 10% across-the-board cuts signal a failure of fiscal leadership under Mayor Johnston’s administration. With Denver already grappling with the economic fallout of immigration-related expenses, rising crime, and business closures, these reductions could exacerbate the strain on residents who rely on city services. A bond rating downgrade would compound this crisis, increasing borrowing costs and forcing even more severe cuts. Chicago’s recent downgrade from BBB+ to BBB in January 2025, led to higher interest payments and service reductions—a cautionary tale Denver cannot afford to ignore.
We are witnessing a financial nightmare unfold in Denver, and Mayor Johnston’s administration must answer for this mismanagement. A 10% cut to every department is a blunt instrument that will hit our police, schools, and roads hardest, while a bond rating downgrade could lock us into a downward spiral of debt and decline. Denverites deserve better than this.
Credit rating agencies are closely monitoring Denver’s mounting financial challenges, including rising costs tied to increase in illegal immigration from other states, declining sales tax revenue, and stagnant property values. Beyond the city, Colorado faces a $1.2 billion statewide budget shortfall and the current Presidential Administration may pull federal funding in response to the cities sanctuary status. As Mayor Johnston prepares to seek voter approval for additional bond funding this fall, these pressures increase the risk of a credit rating downgrade, threatening Denver’s fiscal future.
The Colorado District 1 GOP calls on Mayor Johnston to provide full transparency on the city’s financial state ahead of the April 24 budget meeting and to outline a comprehensive plan to avert a credit downgrade while protecting critical services for its citizens. Rather than slashing budgets indiscriminately, the administration should prioritize spending reductions for migrants and the homeless, and implement efficiencies to safeguard Denver’s fiscal future. The time for accountability and proactive solutions is now—before the city faces irreversible consequences.
About the Colorado District 1 GOP
The Colorado District 1 Republican Party is committed to advocating for responsible governance, economic prosperity, and the well-being of Denver residents. We support policies that ensure fiscal discipline, public safety, and opportunity for all Coloradans.
