By The Johnson Team · Last updated November 2026
You know that all-too-familiar skunky smell that drifts through certain parts of Colorado Springs and makes you wonder if you’ll catch a contact high on your way to church? That, my friends, is the smell of money.
The city’s proposed 2027 budget came out on October 5, and it tells a surprisingly fun story about where our money comes from and where it goes. Here’s the short version, with fewer spreadsheets than the original.
The short answer: Colorado Springs’ proposed 2027 budget includes a $465.5 million general fund, about $38 million more than 2026, and a total budget topping $1 billion. It ends the 2026 furlough days for city employees, adds positions dedicated only to potholes, and uses recreational marijuana tax revenue for fire and police. City Council still has to approve it.
The Colorado Springs 2027 budget at a glance
The proposed 2027 general fund is $465.5 million, up $38.1 million from 2026. The general fund is the city’s main pot of money for core services like police, fire, parks and roads. Counting federal and state grants and other funds, the full proposal tops $1 billion for the first time since 2023.
The mayor describes the city’s finances as improving, though rising costs keep pushing up the price of city services. Every city department gets more general fund money in the proposal, with the biggest increase, $7.2 million, going to the Colorado Springs Fire Department.
The marijuana tithe: where Colorado Springs’ marijuana tax money goes
Colorado Springs uses its recreational marijuana tax for public safety, mental health services, and PTSD treatment for veterans. That’s the rule voters set when they approved a 5% special marijuana tax in 2022.
For about a decade, Colorado Springs said no to recreational marijuana sales. In 2024, voters said yes, on a limited basis. Only existing medical dispensaries could apply, and the number of recreational locations is capped at the number of medical licenses that existed on Election Day. The first recreational sales started in April 2025.
Since then, the city has seen a miraculous decline in chronic back pain and a welcome boost to its coffers. Recreational sales brought in about $3.8 million in their first year, according to the Colorado Springs Cannabis Association, with roughly $3.5 million of that from the special 5% tax. Like some sort of marijuana tithe, that’s about 10% of next year’s budget increase, faithfully delivered by our most devoted users. (For the record, it’s still a little shy of the $4 million a year the city was counting on.)
In 2026, that money restarted the fire training academy, which had been cut from the budget, and paid for new police technology. In the 2027 proposal, it helps pay for $3.9 million in fire equipment (with some help from the general fund) and $1.8 million in police technology.
A crew whose only job is potholes
The 2027 budget adds three Public Works positions whose only job is fixing potholes. Not “potholes and other duties.” Just potholes. Godspeed. Local alignment shops, we’re sorry for your loss.
Smoother roads won’t fix everything, though. Something tells us Colorado Springs streets will still look like a tame version of Grand Theft Auto on any given evening.
Why Colorado Springs furloughed city employees in 2026
Colorado Springs used furloughs in 2026 to help close a $31 million budget shortfall, and the 2027 budget ends them. Most people never heard about it.
The city scheduled five unpaid days off for most city employees, and those earning $72,000 or more took two extra. Police, firefighters, and other public safety and critical operations staff kept working. When sales tax came in stronger than expected, the city canceled the last furlough day, the day before Thanksgiving. That left most employees with four unpaid days, or six for higher earners.
It was the city’s first widespread use of furloughs to balance its budget, and the furloughs saved about $2.5 million. The 2026 cuts also eliminated 38 civilian jobs, skipped raises, and permanently closed the Meadows Park Community Center.
Why sales tax matters so much to Colorado Springs
Sales and use tax makes up about 58% of Colorado Springs’ general fund, so the city’s budget rises and falls with how much we shop. Property tax brings in only $28.1 million. When shopping slowed, the money came up short, and the city had to cut fast.
The good news: shoppers came back. July sales tax collections jumped 8.72% over last year, the biggest monthly gain of 2026, and the city expects to finish the year about $9 million ahead of budget. The 2027 proposal puts $20.3 million toward city staff, including ending furloughs and restoring raises.
So next time someone judges you for buying a patio set to replace the patio set you bought two years ago, skip the “high altitude, thin atmosphere, intense Colorado sun” spiel and just tell them it was an act of public service.
What the 2027 budget means for Colorado Springs residents
- City services follow the economy, fast. A city that runs on sales tax feels a slowdown the same year, not the next. When spending dips, expect parks, rec centers and staffing to feel it first.
- Buying local really does pay for local. A big share of what you spend at Colorado Springs stores funds the roads, fire trucks and police you use every day.
- Homeowners pay relatively little to the city directly. Most of your property tax goes to schools, the county and special districts, not city hall. That’s part of why the city depends so heavily on sales tax.
Good To Know
Common Questions About the Colorado Springs 2027 Budget
Yes. Voters approved limited recreational sales in 2024, and stores started selling in April 2025. Only existing medical marijuana dispensaries could apply, and the number of recreational locations is capped at the number of medical licenses that existed on Election Day 2024.
The 5% special marijuana tax can only be spent on public safety, mental health services, and PTSD treatment for veterans. So far it has restarted the fire training academy and paid for police technology. The 2027 proposal uses it for fire equipment and more police technology.
No. The proposed 2027 budget eliminates furlough days and includes pay increases for civilian and sworn employees. The city also canceled the final 2026 furlough day, Nov. 25, after sales tax revenue came in higher than expected.
About 58% of the general fund comes from sales and use tax, compared with about $28.1 million from property tax. That heavy reliance on sales tax is why the city’s budget reacts quickly when shoppers cut back.
City Council reviews the mayor’s proposal in the fall and holds a public hearing before its final vote, which usually happens in late November or early December. The 2026 budget, for example, was approved in late November 2025.
Wondering how the local economy affects your home’s value or your plans to move? Reach out. We’re happy to run the numbers with you.
Sources: KRDO, proposed 2027 budget · CPR, 2027 budget · KKTV, marijuana tax revenue · CPR, Ballot Question 300 · Gazette, furlough days · KKTV, 2026 budget cuts · Gazette, July sales tax
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