DENVER (AP) – Denver mayor Michael Hancock said Thursday that thousands of city officials, including himself, will benefit for eight days this year to help close what is expected to be a $ 226 million budget deficit caused by the coronavirus, bringing together mayors across the country who have made the same change or are thinking about it.
"This pandemic is not only a public health crisis, but it is also fueling an economic crisis that we have never seen since the Great Depression," Hancock told a news conference.
Denver has seen sharp declines in sales, accommodation and other taxes since the Colorado pandemic two months ago, and the state is still under a more secure home order that has imposed restrictions on businesses.
City leaders say the drop in tax revenue is affecting the fund that pays for police and firefighters, as well as street maintenance.
American cities, from Dallas to Puyallup, Washington, and Miramar, Florida, have already given employees money to save in the face of dire economic forecasts.
In April, Los Angeles Mayor Eric Garcetti released a spending plan that he called "a document of our pain" that includes service and license cuts for nearly 16,000 workers. According to the proposal, city officials would take 26 working days, the equivalent of 10% cut wages, next year.
The spending cuts in Los Angeles are likely to be a sign of what's to come in city halls across the country, as the unemployed queues grow and local treasures see huge drops in tax revenue.
DenverThe planned government licenses, which do not apply to uniformed officials like firefighters, police and sheriff's delegates, will save the city about $ 16 million. The city is also reducing travel, hiring and shopping, and is asking departments to cut 7.5% from their budgets.
About 3,000 of the Denver12,000 employees are uniformed workers.
"I want everyone to know that we worked to exhaust all the other tools we had before taking this step," he said. Hancock, which repeated its call for lawmakers to include cities in the next federal stimulus package.
"The reality is this: if cities fail to recover, there will be no national recovery," he said.
Brendan Hanlon, the city's financial director, said he believed the consequences of the 2008-2009 Great Recession were surprising, but the current crisis will be more difficult to resolve.
"I could never imagine seeing the numbers that we are seeing now and the seriousness that this means for the services we provide to the public every day here in Denver," he said.
The city last instituted in 2011.
A survey by the National League of Cities found an almost universal agreement that cities would be severely affected by revenue shortfalls caused by the coronavirus outbreak and, in many cases, layoffs and layoffs would be used to close budget gaps.
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