City of Pueblo dealing with $10 million budget deficit, low sales tax revenue

The City of Pueblo faces a $10 million budget deficit due to lower-than-expected sales tax revenue and declining pandemic-era funds. Mayor Heather Graham has implemented cuts, including reducing 40 positions, requesting 0% wage increases for 2027, and cutting operational costs by 15% in 2026. If the deficit remains unaddressed by 2028, at least 90 employees may be laid off, prompting proposed sales tax measures for the November election.