‼️ Major City of Denver Budget Governance Changes Proposed
Two proposed ordinances will make significant changes to Denver’s budgeting process and response to lower than expected revenues. As is often the case, they’re a mixed bag, with pros and cons. I discuss each of the key changes in turn.
1. Should Denver move to a two-year budget planning and budget cycle?
Yes to planning, No to biennial budgets that bind or require amendments.
2-year planning. Having plans for staff, programs, projects makes good sense. I imagine most departments are doing this already.
But! Committing funds in advance, locking in budgets, does not serve us well fiscally nor allow sufficient flexibility year to year. Imagine a new Mayor or Council being elected but having to amend a budget approved by your predecessor to implement the agenda Denver voters elected you for.
Further, one of the main justifications of a 2-year budget offered in the presentation materials is to ease budget stress for City partners and nonprofits. This is literally prioritizing the fiscal comfort of “partners/NGOs” more than voters, prudent fiscal management, changing needs, etc.
If you take City money, your project lives or dies on the City’s budget and the will of the people as determined by our elected representatives.
Which leads us to the next, very significant proposed change:
2. Should the Mayor no longer have the ability to reallocate budgeted funds from one project to another within a Department? (Budget allotment discretion)
No.
Like it or not, Denver’s Charter is a “strong Mayor” setup. This includes setting the budget for Council amendment and approval and the ability to make adjustments in December after the budget hearing process. (DRMC § 7.1.8 Budget allotment and work programs).
The draft ordinance removes this entire section from the code.
3. Should the Mayor be required to alert Council when revenues are 2% lower than projected? And if 5% or more require Council to act and cut the budget?
Yes. Yes. Yes.
Council recently passed an ordinance requiring quarterly revenue and expenditure updates. (Yay! I wish it’d been monthly!) the proposed ordinance adds a notification requirement as soon as Finance realizes revenues are 2% lower than projected.
Good amendment. I’m a fan. Since we’re not keeping our books on paper anymore, nor waiting for a stagecoach to deliver tax in coin to the bank, Council should have near real time access to the state of the City’s finances.
4. Should resident engagement on budget priorities be a required budget process element?
Yes, but the effectiveness depends on structure and implementation. If this is a step toward citywide “participatory budgeting” like Denver’s “The People’s Budget” project I’m a hard no.
I’m all for real public hearings, soliciting meaningful feedback, etc. Too often, these are so poorly designed that the feedback is meaningless. For example, everyone likes amenities in theory, but prioritize differently when tradeoffs and costs are disclosed. The other common error is insincerely soliciting feedback.
A minister in a focus group I moderated put it this way (I’m paraphrasing):
“”The City says it wants me to have a seat at the table. I think I’m going to have influence, help them design the if, when, where and what we should eat. Time and again, the City wants me to sit down at the table, eat the meal they made, and expect me to feel good that they let me choose what dressing I wanted on the side salad.””
With respect to the City’s entire budget, our voices are heard at the ballot box. A Budget public hearing can be valuable for specific budget matters, as is engaging with our elected representatives—Mayor AND Council. Representative feedback with honest tradeoffs is valuable. Processes that can be flooded by special interests and activists are not.