Emanuel Orders Departments To Cut Payroll By 10 Percent
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UPDATED 05/10/11 6:57 p.m.
CHICAGO (CBS) – Mayor-elect Rahm Emanuel has ordered all department heads to cut management costs by 10 percent, which would necessitate a combination of salary reductions and some job cuts.
CBS 2 Chief Correspondent Jay Levine reports job and/or salary cuts must total 10 percent per department. Non-union middle- to upper-management-level employees would be affected. The cuts could also be achieved by not filling open positions.
“If you are going to make other types of savings and reforms …. I don’t think you can ward off upstairs, the corporate suite,” said Emanuel, who believes there is some fat that can be trimmed among management at all city departments.
Emanuel is looking for what will total a $75 million cut to the city’s budget as he starts his term in office next week.
The pink slips started going out last week at Chicago Public Schools headquarters–on orders from the new administration.
The City Hall cuts are new. A letter went out last Friday to all commissioners, stating: “I am asking all of you to cut your payroll budgets for appointees by 10 percent – no exceptions and no excuses.”
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Emanuel and his transition team on Tuesday released the Chicago 2011 Transition Report, which outlines the agenda and goals for his first 100 days as mayor, as well as the full first year of his term.
To achieve the $75 million cut, Emanuel will also consolidate the city departments of Revenue and Finance, and the departments of General Service and Fleet Management. The soon-to-be mayor also plans to review and streamline regulations and fees and make contract procurement more cost-effective.
Public safety is also at the top of the list. As Emanuel has mentioned before, he and Cook County Board President Toni Preckwinkle have joined in an effort to create different kinds of summer programs in city neighborhoods that suffer from a great deal of youth violence.
Emanuel is also seeking to strengthen the schools, and to that end, he has created the Chicago Leadership Academy to develop new talent for the schools. The city will also work to make early childhood education available to more youngsters, and bring dropouts back to class.
The plan also calls for a convention of business leaders to develop job growth strategies and finding a site for a new technology campus. Emanuel is also calling for closing “the revolving door between government service and lobbying,” improving access to quality housing and transportation, and creating a healthy city by eliminating food deserts and setting public health goals throughout the city.