Chicago mayor mulls slashing city payroll by $200M: report
The city faces a $1.2B budget gap
{{#rendered}} {{/rendered}}Chicago Mayor Lori Lightfoot is considering slashing the city’s payroll in order to balance the budget, according to a report.
The city is weighing $200 million in payroll cuts to help plug its projected $1.2 billion budget gap, the Chicago Tribune reported, citing sources.
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{{#rendered}} {{/rendered}}“As we face an unprecedented challenge in the face of COVID-19, the Mayor has repeatedly said that we have to face some very hard and painful choices, and that all potential solutions must be considered including personnel actions," Mayor Lightfoot's office said in a statement while not addressing the size of potential cuts.
The City of Chicago faces a ballooning deficit in fiscal year 2021 after the COVID-19 pandemic caused widespread disruption to its economy, like in other cities. A 10% year-over-year drop in the city’s second-quarter gross domestic product led to a $799 million mid-year 2020 budget shortfall.
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{{#rendered}} {{/rendered}}The shock to Chicago’s economy comes as the city was attempting to get its fiscal house in order. Lightfoot last year identified more than $500 million in structural solutions, the largest total since 2012, to fill the city’s record $838 million gap.
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Still, the city has $10 billion cash and $46.5 billion of unpaid bills, according to a July 2020 report released by Truth in Accounting.