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Mayor says Chicago faces $635M budget deficit

Chicago Mayor Rahm Emanuel said Friday he won’t raise taxes to fix a budget deficit estimated at more than $635 million because taxpayers already feel “nickeled and dimed.”

Emanuel also promised not to fix the budget by cutting police on the streets or by relying on one-time measures, such as raiding reserve funds, something his predecessor, Mayor Richard Daley, did. Emanuel has known since he took office in May that the city budget was in dire straits.

“The taxpayers, as we all know, feel nickeled and dimed as it relates to taxes, and I will not ask them to pay more for an inefficient government that is not delivering services on a more cost-effective basis,” Emanuel said.

The projected deficit — pegged at $635.7 million next year — is predicted to grow in 2013 and 2014 unless significant changes are made. Emanuel will present his 2012 budget proposal to the city council in October.

The deficit projection comes as Emanuel is pushing hard for concessions from unions. He has Emanuel has accused the unions of dragging their feet on cost-saving moves, a characterization the unions reject.

The deficit projection comes as Emanuel is pushing hard for concessions from unions. He has already announced plans to lay off more than 600 workers, and while union leaders announced earlier this week that they have a plan to save the city $242 million so those jobs won’t have to be lost, Emanuel has accused them of dragging their feet on cost-saving moves.

The American Federation of State, County and Municipal Employees, which represents 4,000 city workers, called on the mayor Friday to work with employees.

“We call on the mayor to commit to preserving essential city services and jobs instead of fat contracts and redundant management. AFSCME members stand ready to work with this administration to that end,” said Henry Bayer, executive director of AFSCME Council 31, in a statement.

Emanuel wouldn’t say how many more jobs could be lost because of the city’s budget problems. He said the city is working to save money, such as by having private companies compete for city work. He recently announced a private company was coming in to handle some of the city’s recycling program.

Laurence Msall, president of the Civic Federation, said it’s a “financial day of reckoning” for the city, which for years had avoided making tough budget decisions.

“This is an opportunity to make those tough and painful decisions and be better off,” Msall said.