Colorado Springs budget plan cuts 38 jobs amid projected $31M shortfall

COLORADO SPRINGS, Colo. (KRDO) - In light of the 2026 budget cycle, the City of Colorado Springs announces a budget response plan due to a projected $31 million shortfall. Some of these measures include laying off 38 city employees and closing the Meadows Park Community Center, according to the city.

Below are the steps the city says they will take in their budget response plan:

• Reduction in Force (RIF):
  38 civilian positions, or approximately 1% of the City’s workforce, will be eliminated, excluding sworn public safety roles. Several unfilled vacancies will remain unfunded.

• Furlough Program:
  Five scheduled unpaid furlough days will be implemented in 2026 for City employees, excluding public safety, critical operations, and grant-funded positions. These days will be pre-scheduled throughout the year to spread out the financial impact for employees and for clear communication to residents. Employees earning $72,000 or more annually will take two additional floating furlough days.

• Capital and Operational Efficiencies:
  The City will defer select capital projects and centralize fleet and facilities maintenance to reduce spending. Approximately $11.2 million in departmental savings have been identified, along with a $3.5 million reduction to the Capital Improvement Program.

• Meadows Park Community Center Closure:
  The community center will permanently close on October 10, 2025, following an evaluation of program participation, staffing constraints, and availability of similar services at other community centers. The closure is projected to save approximately $775,000 annually. Residents who use Meadows Park are encouraged to use the Hillside, Deerfield Hills, or Westside Community Centers, which offer youth programs, senior services, and special events.

• Compensation Adjustments:
  There will be no cost-of-living or performance-based raises in 2026. Civilian employees earning below the midpoint of their salary range will be eligible for up to a 2% pay progression on their job anniversary. Sworn step increases will continue as scheduled.

“Closing a long-standing community center is never easy, and we understand the emotional connection many residents have to Meadows Park,” said Britt Haley, Director of Parks, Recreation & Cultural Services. “This decision followed extensive evaluation of both usage and operational capacity. With declining programming and nearby alternatives available, we made the difficult choice to consolidate in order to preserve the overall strength of our parks and recreation system. We remain committed to serving this community with care and continuity through our other centers and partners.”

The city states that these changes will help maintain the long-term financial health of the city, as well as ensure the continued provision of public safety, emergency response, and infrastructure services for the community.

“These are hard decisions, but we’re acting early to protect what matters most to our residents,” said Mayor Yemi. “These decisions are about being proactive, not reactive. By planning ahead, we are protecting the core services our residents rely on, like public safety and infrastructure, and keeping Colorado Springs strong for the future. These measures will ensure we are delivering for residents while also committing ourselves to fiscal responsibility and a balanced budget. This city has been doing government efficiency for years, it's not new to us. This economy presents new challenges, but we are rising to the occasion and making the right decisions that best serve our residents.”

This is separate from the $11.5 million deficit announced earlier this year, which applied to the 2025 budget.

According to the city, a proposal will be presented on Oct. 6, beginning a public process of work sessions, public hearings, and council deliberations through October and November.

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