Chicago reported last week that its key revenue sources are down $183 million from projections, putting them on track to fall $302 million short of budgeted levels at the end of the year.

Revenue is still performing poorly compared to original estimates, but hasn’t fallen below revised projections issued in July when the city released its preliminary 2010 budget. It must close a $520 million deficit going into the next budget year.

In addition to furlough days and cutting jobs, Chicago continues to cut spending in the current budget and make management more efficient. It announced last week it would save $1.4 million by reducing and overhauling its fleet use, including heavy equipment and other vehicles. The police also will redeploy some cars that officers are now allowed to take home.

“We continue taking every possible step to reduce the cost of government, and limit the impact of this recession on taxpayers,” said budget director Eugene Munin. “Chicago, like every major city, is experiencing significant budget shortfalls as a direct result of the recession.”

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