City of Pueblo dealing with $10 million budget deficit, low sales tax revenue
Jul 30, 2026
The City of Pueblo is dealing with a $10 million budget deficit. Mayor Heather Graham says lower-than-expected sales tax revenue is to blame.She says extra funding the city received during the pandemic is also drying up, making
the situation worse. The mayor says she has already made numerous cuts to try to close the gap."Since 2025, I think I cut about 40 positions overall," said Mayor Graham. "For 2027's wages, I have asked unions to take 0% wage increases... In the 2026 budget, we reduced the city's operation cost by 15% overall."She says if the deficit is not made up by 2028, the city will have to lay off at least 90 employees.To avoid this, Mayor Graham is proposing four different sales tax measures for the November election. Pueblo City Council will then vote whether to put them on the ballot or not.The first presentation for those ballot measures is scheduled to happen next month._______Watch KOAA News5 on your time, anytime with our free streaming app available for your Roku, FireTV, AppleTV and Android TV. Just search KOAA News5, download and start watching.
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