Chicago's budget hole shrinks by $68 million

CHICAGO — Chicago Mayor-elect Rahm Emanuel is inheriting a $587 million budget shortfall when he takes office this month.

But as bad as that sounds, that budget gap is actually smaller than originally thought.

Mayor Richard Daley's financial managers said Friday that the budget hole is about $68 million less than previous projections.

Budget Director Eugene Munin says higher tax collections, cost cuts and a hiring freeze have helped reduce the gap and save some cash.

Munin says the city has replaced just 78 of the 500 people who have left the payroll in 2011.

City officials expect to end this year with $65 million in the bank.

Emanuel has said he'll cut $75 million more from the budget this year. He'll be sworn in as mayor on May 16.