City Running $300 Million Deficit, Plans to Lay Off Over 1,500

As reported in Crain’s Chicago Business:

The city of Chicago announced Friday that it has been forced to send layoff notices to 1,504 unionized employees, job losses it claims could have been avoided if union leaders would have agreed to bargain on certain contract concessions.

While the cuts were expected, the total number tops the 1,000 Mayor Richard M. Daley had mentioned on Thursday. The cuts affect virtually every corner of city government, except for sworn police officers and fire fighters. Hardest hit are Chicago’s Streets & Sanitation, Department of Water Management and non-uniformed police.

Also on Friday, city budget officials also disclosed that the gap in Chicago’s 2009 budget is nearing $300 million, a shortfall that likely will force City Hall to further dip into proceeds from recent asset leases, said Gene Safford, Chicago’s chief financial officer.

Layoffs will take effect on July 15 unless the city and its unions can reach an agreement on furlough days, pay cuts, overtime and other matters, according to a letter Mr. Daley sent to affected employees.

Schools lay off 1,00 and the city threatens to lay off another 1,500 BUT still we plan on spending billions for the Olympics. Go figure.