May 17, 2011

On His First Day In Office, Mayor Emanuel Announces $75 Million In Savings for Current City Budget

Calls for Streamlining Functions and Better Coordination of Service Delivery Across City Departments

Mayor's Press Office    312.744.3334

On his first full day in office, Mayor Rahm Emanuel today announced $75 million in savings to the City’s budget for fiscal year 2011. 

Mayor Emanuel has pledged to get the City’s fiscal house in order by implementing cost-saving measures.  

“These $75 million worth of immediate savings to the 2011 budget are only the beginning,” said Mayor Emanuel. “They pave the way to a leaner budget for the 2012 fiscal year. And they also send an unmistakable message: I am committed to stabilizing the City’s finances in order to secure Chicago’s long-term economic future.”

“For Chicago to continue to thrive as a business hub, every stakeholder will need to approach deficit reduction with seriousness of purpose and a willingness to consider new ideas,” added Emanuel.

Mayor Emanuel’s plan calls for reductions of the City’s current budget in the following ways:

  • Cut Senior Management Payrolls -  $5.5 million

Require commissioners to reduce senior management payroll by 10%.

Commissioners will be able to realize savings either by lowering salaries or reducing number of senior staff positions.


  • Reduce Outside Legal Counsel Expenses -  $3.0 million

Better utilize the Law Department’s in-house attorneys and rely less on outside counsel.


  • Merge Overlapping Functions Across Departments -  $3.5 million

Consolidate finance, IT, procurement and HR functions across City Departments. This process has already begun with merger of the Fleet Management and General Services Departments.      


  • Freeze All Non-Essential Contract Spending - $17.5 million

Pool procurement requirements to buy in bulk in collaboration with the

County and other government agencies; freeze non-essential contracts.


  • Implement Real Estate and Energy Reductions - $5.0 million

Cut back on energy consumption, janitorial services, leased space and other real estate costs. Philadelphia has achieved 10% savings in these categories through similar reduction efforts.


  • Rationalize & Reduce Vehicle Programs-  $1.5 million

Reduce the number of vehicles maintained by the City and replace more of the aging fleet with fuel-efficient vehicles to realize additional energy savings.


  • Return 60 Laborers to Work - $0.5 million

Expand return-to-work program by bringing 60 injured employees back on

the job in less physically demanding roles.


  • Parking Enforcement &Traffic Control Coordination - $2.3 million

           Better coordinate departments that control traffic and collect parking

           enforcement revenue.


  • Improve Grants Management- $31.2 million

Rein in administrative costs associated with state & federal government grant funding. Reduce unspent grants — City left approximately $100 million in grants unspent from 2008 - 2010.


  • Dept. of Water Mgmt./CDOT Coordination - $5.0 million

Better coordinate construction projects and street repairs between the Department of Water Management and the Chicago Department of Transportation.