Emanuel to inherit Chicago's $587M budget shortfall

May 7, 2011 3:33:25 PM PDT
Mayor-elect Rahm Emanuel is inheriting a $587 million budget shortfall when he takes office this month, according to Mayor Richard Daley's financial managers.

At a news conference Friday, Budget Director Eugene Munin said that the deficit is actually smaller than originally thought. The budget hole is about $68 million less than previous projections. Higher tax collections, cost cuts and a hiring freeze have helped reduce the gap and save some cash.

Emanuel says he'll cut $75 million more from the budget this year.