Emanuel names team to tackle Chicago deficit

Chicago Mayor-elect Rahm Emanuel named a new city finance team Wednesday to tackle a massive budget deficit that he said is a threat to the city's economic future.

Emanuel broadly estimated the budget hole at between $500 million and $700 million. The city's inspector general's office has warned the deficit is effectively more than $1 billion when spending increases are included to properly fund the pension systems.

"Bringing our costs in line with our revenues will put Chicago on a trajectory towards a stronger economic future. Balanced budgets will give companies greater confidence about investing in Chicago," Emanuel said during a press conference downtown.

Longtime business executive and new deputy mayor Mark Angelson will help Emanuel navigate the city's finances along with other top financial officials in the new administration. Emanuel takes office May 16 and will replace retiring Mayor Richard Daley, who led the city for more than two decades.

In addition to Angelson, Emanuel's financial team also includes Lois Scott as the new chief financial officer and Alexandra Holt as city budget director.

Angelson, an executive who's led several companies including RR Donnelley, will be paid a $1 annual salary, according to Emanuel's transition team. Scott is currently president of a company that gives financial advice to governments, nonprofits and corporations. Holt is a lawyer who has worked before as the city's managing deputy budget director.

Angelson also will head the Mayor's Economic, Budgetary and Business Development Council, which will be made up of top administration financial officials, the procurement chief and economic development team. The group will evaluate the city budget and programs to look for savings.

Emanuel has already said he will cut $75 million from the current budget and he plans to order a government-wide spending freeze.