City could run $200M deficit this year

March 6, 2009 3:34:49 PM PST
Bad budget news for the city of Chicago: Mayor Daley's Chief of Staff Paul Volpe says the city budget could fall $200 million short by the end of the year.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.