Daley Cuts $20 Million From City Budget

By Margaret Lyons in News on Mar 13, 2008 6:23PM

Mayor Daley introduced a $20 million budget cut today that includes a hiring freeze, cutting nonpersonnel costs, and the elimination of non-essential overtime. Daley said he'd back layoffs, too, if that's what it took to avoid raising taxes again. (Yes, we all know how he hates to raise taxes.) He says these cuts are necessary because a recession may impact the city's tax and fee–based revenue.

"We are taking proactive steps to protect taxpayers before we see a total economic downturn, but it would also be irresponsible for us to not be conscious of what's going on around us nationally, and at some point it makes sense. That slowdown may manifest itself materially in the city's revenues," said Paul Volpe, CFO, City of Chicago.

Daley says the economy is "slipping and slipping," which is why, despite a $280 million tax increase, the city still needs to be as cost-conscious as possible.

Pointing to the struggling newspaper industry, he said, “If you go to your company, they’re laying off people…Why are they doing that if the economy is so good — if your sales are up, if your advertising is up? We’re just like you. We’re just like any other company. It’s a huge company. We have the taxpayers. You have your shareholders. You have to do things to protect them.”

[CBS2, Trib, ABC 7, S-T, Mayor's press release]