Oct 14, 2008 6:42 pm US/Central
Daley To Shut Down City Government To Save Cash
'Non Safety-Related City Services' Will Be Shut Down For 6 Days Over Next 2 Years
CHICAGO (CBS) ―
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Mayor Richard M. Daley (File)
CBS
Mayor Richard M. Daley said Tuesday he will shut down "non-safety related city services" for six days abutting holidays over the next two years to save millions of dollars.
CBS 2 Political Editor Mike Flannery reports that Mayor Daley says he's facing a budget shortfall of nearly a half-billion dollars. He's already moved to cut 2,500 jobs from city hall's payroll. Now he's going to shut it down - along with other non-essential facilities on the day after Thanksgiving, Christmas Eve and New Year's Eve. That will save $20 million.
The mayor's announcement Tuesday followed behind the scenes bargaining in which labor unions rejected the idea of taking unpaid days off while city services continued as normal. So Daley made an end run around them. He said all but the most essential city functions would shut down - and city workers would not be paid - on three days during the upcoming holiday season.
"The economic crisis in this country is getting worse and worse every day, and that's what you see in every headline in any major newspaper – locally, nationally and internationally," Mayor Daley said. "And it's gonna get worse next year."
City employees downtown at Harold Washington Library were very unhappy at the prospect of a 1.2 percent pay cut hitting right at the holidays.
Members of the tax-paying public were divided.
"This is a time for tough cuts, people aren't gonna like it, but what else can he do? He's gotta take it a step at a time," a taxpayer said.
"I understand the reasoning behind it and saving money, and that's very necessary, but if there are other ways to cut city spending besides taking money from their employees," another taxpayer said.
Some union leaders promised a court fight claiming Daley does not have the power unilaterally to furlough their employees for three days. They are also preparing for a public relations battle.
"When you see $35 million being spent on public relations, consultancies," said Roberta Lynch, AFSCME union official. "We think that kind of money is really not appropriate."
"No one wants to lay off anyone," Mayor Daley said. "No one wants to do that."
The mayor will formally present his 2009 budget recommendations to the City Council Wednesday morning framing the entire document as a response to the economic crisis. No real estate tax increase - but look for increase in parking tax and amusement tax on sporting events and theater.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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