City Budget Shortfall Worse Than Expected
By Marcus Gilmer in News on Mar 6, 2009 9:20PM
So apparently the news that unemployment around the nation is at its highest in 25 years isn't enough for City Hall. Mayor Daley's chief of staff Paul Volpe announced today that, not even a week into March, the city is already short $33 million for the year and the city could fall behind by as much as $200 million before we roll into 2010. Per the Trib's Clout Street:
As is often the case with bad budget news, the Daley administration let it slip on a Friday, when news is less on the public's radar screen as the weekend approaches.
Daley’s $6 billion financial plan, approved by aldermen in November, included more than 400 layoffs and $53 million in new taxes and fees to close a budget hole then pegged at $469 million.
It also relied heavily on the $1.15 billion, one-time payment the city received this year on the 75-year lease of its parking meters. The city will use $150 million of that to cover operational costs this year and also could tap into a $320 million “budget stabilization” fund created to weather the recession.
Volpe added talks with unions have again started up to search for ways to save money.