City could run $200M deficit this year

March 6, 2009 (CHICAGO) Income, sales and real estate transfer taxes are way below projections so far this year. City Hall is starting talks with unions to find ways to save money.

"Eighty-five percent of our costs are personnel, and 90 percent of those folks are union. So, I think that's our first step, and let's also remember public safety cost collectively. Police, fire and emergency dispatch are over 65 percent of the city's cost," Volpe said.

The 2009 budget approved late last year included 400 layoffs and $53 million in new taxes and fees.

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