Aug 14, 2008 6:59 pm US/Central
Mayor Daley Says 'We're In A Recession'
CHICAGO (CBS) ―
Mayor Daley isn't mincing words - one word in particular: recession. CBS 2's Dana Kozlov reports.
"We're in a recession," Mayor Daley said. "No one wants to admit it, but we are in a recession."
Mayor Daley laid it on the line the same day city officials announced Chicago's biggest budget shortfall ever.
"It's a crisis, not only in the private sector, in the public sector," Daley said. "The public sector is not immune from this economy."
Daley's financial officer says Chicago is facing a $420 million budget hole - which means cost cutting will likely occur across the board to make ends meet. Officials say revenues are down and that, combined with record high fuel prices, a slumping real estate market and larger than expected snow removal costs - have put the city deep into the red.
"It is unprecedented," said Ald. George Cardenas (12th).
Cardenas estimates the city will have to layoff 1,800 people to help balance the budget.
"I'm just being forthright about what kind of situation we're in - in preparing communities, preparing people overall that this is a bad time and we have to take measure that are not going to be easy," Cardenas said.
Hundreds of those jobs could be city union workers. Chicago Federation of Labor President Dennis Gannon says union leaders have been talking with the city - in hopes of ultimately saving as many jobs as possible.
"If it's a massive layoff, if they lay off over 1,000 people, the folks that are going to get hurt the worst are going to be the citizens of the city of Chicago," Gannon said. "Because somewhere along the line, services are going to need to be cut."
The mayor's financial officer says, among other things, the city will implement a hiring freeze, cut spending by 3 percent across the board and suspend all non-safety related overtime to help cuts costs. Daley says one thing he won't do is raise property taxes.
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