City Of Boulder Budget Shortfall: Furlough Extensions, Layoffs

BOULDER, CO — The City of Boulder has announced service changes and further budget cuts as the coronavirus spreads in Colorado. In April, the city predicted lost revenues of at least $28 million, and 737 city staff were placed on furlough. The latest data shows the city can anticipate more than $30 million in lost revenue, officials said.

The city has identified $18 million in cost savings for non-essential projects, programs and services, which will be announced in the June 9 city council meeting, officials said.

Of the 121 furloughed full-time employees, 84 have either already returned to work or will return June 29, the city said. Through Sept. 30, furloughs will be extended for 33 'standard' employees and 472 temporary employees — most of whom "are unable to work remotely due to the nature of their position," officials said.

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On Monday, 56 standard and fixed-term employees were laid off, 68 temporary positions ended and an additional four standard employees were furloughed, the city said. The city has saved $5 million by leaving 103 staff positions vacant.

Except for emergency staff, all city employees will be required to take off six unpaid days — extended holiday closures — in 2020.

The city is using a Racial Equity Rapid Assessment Tool to guide budget and service level reductions, officials said.

“It is heartbreaking that the financial realities of the coronavirus pandemic have forced us to cut so deeply,” Boulder City Manager Jane Brautigam said in a statement.

“These painful decisions were made as a last resort after exploring all other options; in making them, careful consideration was taken to prioritize public safety, essential services, basic needs of the community, and minimize impact to standard employees.”

Boulder may see a more significant decline in sales and use tax revenue than some other Front Range communities during the stay-at-home and safer-at-home orders because of impacts to major economic drivers, such as the closure of the University of Colorado Boulder campus, abrupt halt of tourism and cancellation of large community events, the city said.

City employees that were impacted by the layoffs and furloughs were notified Monday and may be eligible for unemployment benefits. Through the CARES Act, the federal government is providing an additional $600 weekly in addition to regular unemployment insurance benefits.