Colorado Politics

Fixing public budgets with accountability | OPINION







051325-cp-web-oped-ClarkeOp-1

Erik Clarke



The City of Denver and the State of Colorado are at a fiscal crossroads. Economic uncertainty, declining revenues and escalating service demands are straining public budgets. In Denver, city leaders are contemplating cuts to core programs, while at the state level, lawmakers have grappled with budget shortfalls exceeding $1 billion and more to come in future years. These challenges are real and pressing. The solution isn’t solely about cutting deeper; it’s about spending smarter.

Too often, budget debates skip a crucial question: Are our tax dollars used effectively? Are city and state programs delivering measurable results? Without a sharp focus on performance and outcomes, we risk eroding public trust and missing opportunities to maximize the effect of every dollar.

Denver’s financial situation underscores the need for rigorous oversight. The City’s Department of Finance projects flat revenue in 2026 with spending demands outpacing income. Sales tax revenues for 2024 fell $40 million short of expectations, reflecting a slowdown in the local economy. The City’s General Fund reserve sharply dropped from $391 million in 2022 to $239 million in 2024.

At the state level, Colorado faces its own constraints. Economic uncertainty, including inflation and interest rate volatility, has reduced the state’s expected General Fund revenue. The governor has proposed tapping into the state’s $2 billion reserve to help close the gap, raising questions about the sustainability of long-term funding commitments.

These fiscal pressures call for detailed, independent evaluations of how public dollars are spent. Performance auditing should not just flag waste, abuse and fraud concerns, but should identify what’s working, what’s not working and where improvements can be made. A recent performance audit from the Denver Auditor’s Office on city-run shelters is a good example of an effective audit. The audit raised important questions about service quality, contractor accountability and whether those dollars are producing results.

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Construction oversight, in particular, demands more attention. Denver is managing billions in public infrastructure projects from the ongoing work at the Denver Airport to the potential rollout of an $800 million General Obligation Bond package. Early, consistent oversight is necessary to provide the public assurance these projects are on time and within budget, that contractors are being selected fairly and impartially, and that transparency and accountability are built into the process from day one. When projects run over budget or underperform, the taxpayers ultimately foot the bill and it diminishes trust.

To meet these challenges, government accountability functions must focus on performance, construction and technology oversight. That means the watchdogs should be invested in data analytics, technology tools, real-time reporting, and specialization in modern audit topics, like cybersecurity. This is how we weed out problems before they snowball. A focus on more transparency, including public dashboards, independent reporting, and direct engagement with the public invite robust dialogue about how tax dollars are spent and how those resources can make the biggest difference on the topics that people care about.

We’re fortunate to have public servants in city and state government who are deeply committed to their work. These public workers are strengthened with collaborative, thoughtful, and independent accountability through performance auditing. As we face tight budgets and growing demands for public services, it’s not enough to simply do more with less — we have to do better with our resources through good process, management and policy.

Strong oversight, smart spending, and transparency are not luxuries; they are necessities. By investing in these fundamentals, we can improve public trust, invest in results and build a better future for every Denverite and every Coloradan.

Erik Clarke is an executive controller in the private sector and was formerly in management roles at large accounting firms with a focus on internal auditing, including managing performance, cybersecurity and construction audits. He was a candidate for Denver Auditor in 2023.

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