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.