Chicago Mayor Richard Daley last week ordered city departments to cut non-personnel spending by 6% to save $11 million as economically sensitive revenues like the sales tax and real estate tax have failed to pick up.
The order affects all non-public safety departments. Daley also has told agency heads to keep spending level in their 2011 budget proposals unless there is a "compelling" reason to raise spending. A hiring freeze also remains in place.
"While it is still far too early to determine if this year's conservative revenue projections will continue on track, we know that we will continue to face large deficits this year and for the next few years, as the economy slowly recovers," Daley said. "That's why we have to continue to get out in front of these bad times."
The City Council adopted a $6.14 billion budget for 2010 late last year.