Daley predicts hard times for city

Chicago Mayor Richard M. Daley is predicting tough financial times for the city in the coming year.

And while talking Saturday with reporters, Daley pointedly declined to rule out layoffs of police and other municipal employees.

Daley was asked about a published report that the city is likely facing layoffs because of a $400 million-plus shortage in the upcoming 2009 city budget. The mayor noted that the city -- unlike the federal government -- doesn't have the option of running up the deficit to fund its programs.

Daley noted that the economy nationwide is in a serious downturn that will trigger further belt-tightening at home.