Mayor Rahm Emanuel announced $75 million in savings to the city’s budget for the 2011 fiscal year on Tuesday, his first day as mayor of Chicago.
“These $75 million worth of immediate savings to the 2011 budget are only the beginning,” said Mayor Emanuel. “They pave the way to a leaner budget for the 2012 fiscal year. And they also send an unmistakable message: I am committed to stabilizing the City’s finances in order to secure Chicago’s long-term economic future.”
Mayor Emanuel’s plan calls for reductions of the city’s current budget in the following ways:
Cut Senior Management Payrolls – 5.5 million
Require commissioners to reduce senior management payroll by 10 percent. Commissioners will be able to realize savings either by lowering salaries or reducing number of senior staff positions.
Reduce Outside Legal Counsel Expenses – $3 million
Better utilize the Law Department’s in-house attorneys and rely less on outside counsel.
Merge Overlapping Functions Across Departments – $3.5 million
Consolidate finance, IT, procurement and HR functions across City Departments. This process has already begun with merger of the Fleet Management and General Services Departments.
Freeze All Non-Essential Contract Spending – $17.5 million
Pool procurement requirements to buy in bulk in collaboration with the
County and other government agencies; freeze non-essential contracts.
Implement Real Estate and Energy Reductions – $5.0 million
Cut back on energy consumption, janitorial services, leased space and other real estate costs. Philadelphia has achieved 10 percent savings in these categories through similar reduction efforts.
Rationalize & Reduce Vehicle Programs- $1.5 million
Reduce the number of vehicles maintained by the City and replace more of the aging fleet with fuel-efficient vehicles to realize additional energy savings.
Return 60 Laborers to Work – $0.5 million
Expand return-to-work program by bringing 60 injured employees back on
the job in less physically demanding roles.
Parking Enforcement &Traffic Control Coordination – $2.3 million
Better coordinate departments that control traffic and collect parking enforcement revenue.
Improve Grants Management- $31.2 million
Rein in administrative costs associated with state & federal government grant funding. Reduce unspent grants — City left approximately $100 million in grants unspent from 2008 – 2010.
Dept. of Water Mgmt./CDOT Coordination – $5 million
Better coordinate construction projects and street repairs between the Department of Water Management and the Chicago Department of Transportation.
“For Chicago to continue to thrive as a business hub, every stakeholder will need to approach deficit reduction with seriousness of purpose and a willingness to consider new ideas,” said Emanuel.
To see Rahm Emanuel’s many appearances on Chicago Tonight over the years, visit our Mayor Rahm Emanuel page. There, you will also find information on Emanuel’s Chicago 2011 Transition Plan, newly formed leadership teams and the latest news.