Emanuel Orders Departments To Cut Payroll By 10 Percent

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.”

LISTEN: Newsradio 780 Political Editor Craig Dellimore Reports

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.

Read the 2011 Transition Report here.

  • outfit

    can he find out who hired the guy in charge of the hired truck program,since da mare never got back to us the taxpayer!



  • Javed B. Sheikh

    Bravo Mayor-Elect Emaneul! Cut the fat and the waste in City Government. The Old Machine should be repalced with new clean, efficient and well running system of openess, checks and balance.

    Enough of the old dynasty in Chicago. New blood is needed.

    I wish you well Mr. Emaneul.

  • Pothead

    HAIL RAHMULUS !!!!!!! Thats a decent start but we will be keeping an eye on you.

  • Joe

    Get rid of the parasites from the payroll. If he does this, I will become a believer!

  • don

    lets start with 25 of the 50 aldermen

  • jesse jr.

    get rid of the11thWARD,19TH WARD HACKS IN CITY


    Okay guys ,Did you miss the fact that the 1300 losing their jobs will be non union and middle level management? There is no doubt the city and county payroll is bloated with way too many ,family.friends,and other well connected cronies. But could it be the little common folk, middle class, that will be losing their jobs are the ones doing 90% of the workload.The soon to be mayor plans to make “contract procurement more cost effective” ? Sounds somewhat like what the trial going on now with the other crook is all about. And the wheel continues to go round and round.

    • Pothead

      It says upper management………we’ll see. I am willing to give him some time.
      We’ll see if this wheel keeps spinning the same way.


        Pothead,You’re right you little nit picker you! It does say non union and middle to upper management level employees. The key here is they aren’t breaking it down. Judging by the numbers Rahmmy used for unemployment figures while he was in the White House,I would think it will be about,1000 non union workers,298 middle managers,and 2 upper managers. The 2 upper Managers are both Republicans,that’s all they could find in their investigations of all of the city employees. I don’t want to burst your bubble Pothead,but the wheel has been spinning for way too many years and generations in Chicago now to slow down any time real soon. What ever happened to that possible deep and intense investigation into the truck for hire scam? Richie always promised to get back to us real soon on the investigations,did they just all go away somewhere? A quick read on the City “boss” that thinks his manager making $142,000. and getting caught with theft of services,shouldn’t be fired ,that it would be too harsh on him. The poor thief will now have to spend 25 days at home before he can go back to work. The timing is right for him,it’s Spring and he has a lot of yard work to do,and getting caught once he wont dare have those city employees cut his grass or wash his car again. I would bet he will go out and buy his own cigars by himself now,he sees the need for his city employees to stay on the job they are paid to do. Don’t you just love this wheel and how it keeps spinning. Pothead it’s way too early in the day,put that doobie out!

  • Dan

    The waste that needs to be cut is in all the city contracts awarded to those who pad the pockets. Stop putting people out of work and cut the corruption, the flower boxes and hiring all these consultants. Most importantly cut the alderman. With the 311 service there is no need for all these alderman.

    • Pothead

      The flower boxes look great.

  • JJ

    Get rid of UNIONS as well!!!! They expenct for us, the taxpayers, to simply pay this overpaid civil servants that don’t do anything.

    • dj

      Some people in UNIONS work hard for their money. I have worked in Union and Non-unions jobs. They both offer different things. Non-union get social security, Union does not. If you are a non-union person who ‘s to say you work.

  • Mike

    It sounds good on paper but let’s wait and see what jobs are really cut. Let’s hope that he doesn’t include those phantom jobs that are have been cut in the past with no money ever being saved. We know how it works, a department with 40 people claims they need 4 additional people but theres no money in the budget. So they have everyone believe that the department is understaffed at 40 when they should have a staff of 44. Those 4 job requests stay open. When it comes time to cut staff by 10% then they use the 4 job requests as the jobs they cut. The net result is that the department that was working with 40 people still have their 40 people and there is no real dollar savings. The jobs that were cut weren’t really jobs associated with a person just a budget. Daley and his cronies used to do this all the time, make a big announcement on cutting jobs but we never saw the purported money savings associated with those jobs.


      Mike,Excellent point and so true. That’s a book keeping routine from Chicago City Hall,that Mr. Obama has been using in Washington going on 3 years now. Or was it a Washington book keeping that made it over to City Hall in another decade of graft? I get so confused with all this slight of hand political business that I can’t keep track of it all. If the soon to be mayor does a good job,I’d be surprised. His track record here in Illinois isn’t the cleanest,he has a smell of graft in the way he acquired his $ millions. Time will tell if maybe the wheel will stop turning in Chicago.

  • Legato

    Great start, Cutting right when he steps up to the plate.

  • Alfredo

    He is getting rid of the non-union working people who actually work for their paycheck. If he really wanted to clean house he would get rif of the UNION people who don’t contribute anything of value because they do not fear getting fired since their UNION protects them.

    • dj

      Do you work? Do you work hard? Stop saying Union peoplle don’t work. If you’ve never been in a union what do you know?

  • Larry

    1300 Daley relatives GONE

  • meaux feaux

    Rahm Emanuel managed to make over 16 Mil for himself in a 2.5 yr. period as a bankster. There is no political, or for that matter, social justice with this Fascist Ass-Clown.


      Excellent point! That 2.5 yr. period was spent collecting paybacks to the tune of that fat 16 Million $. Pay backs and kick backs,the lifeblood of Chicago politics. The cronies and the well connected always get theirs. It’s the little common folk that give them all that money,and sad to say keep electing them to office. You would almost think with all the millions Rahmmy has now,he would have just retired to a beach mansion like Richie is doing. I think it’s the greed,ego,and power thirst that has him where he is. What a perverse situation the common folk put up with.

  • http://vidxt.com/wordpress/?p=4905 Teaching children about financial responsibility while they are young | Money News

    […] Emanuel To Begin Term As Mayor With Job, Salary Cuts Mayor-elect Emanuel Rahm Emanuel has ordered all department heads to cut management costs by 10 percent, which would necessitate cuts of about 1,300 jobs. Read more on CBS Chicago […]

  • In The Know

    What a savings that would be,also way too many deputy comissioners,and assistant commissioners take a look in AVIATION first,yoy won`t believe it!!


      Yea In The Know,I believe it. When you have as many relatives,friends,friends of relatives,folks that get out the vote for your “boss”,their relatives ,friends,and then all their friends and relatives you have a lot of people you need to give a position to on the City Payroll. That’s the reason the deputy commissioners have assistants, and their assistants have assistants,and on and on and on.Please notice I didn’t say give a job to,as that would mean all those connected cronies would have to work rather that just hold a position,collect a paycheck, and wait for that fat pension. It’s the Chicago Democratic Machine running at high speed. That’s what keeps them in office,and all their crooked cronies on the payroll. And the wheel continues to around,and around,and around.

  • Costellah

    How many people are gona loose their jobs now that the cuts are in place? Many lost their pensions already and medical insurance too due to los wages. We, taxpayers are paying too much to aldermen and those perks they get. Plus the retirement money they get is too much. Cut the salaries of the higher ups and dept heads too. They make too much and the cars they use with gas included.

  • jaycool

    They should get rid of some of watermanagement districtforeman jobs and superintendent position making over 100,000 plus a year and some crew foremans and inspector position they do nothing but steal time and taxpayers money.and they should demote all lthose who got promoted before the new mayor took office.starting from north district called sunnyside yard.And for those who don’t work for union jobs some of the union employees do work,

  • jaycool

    And for those who got these promotion with clout they need the shackman lawyers to investigate for unfair practice that is still going on in the watermanagement department.Like a son of a x alderman who got to many promotion in last ten years he messes up and gets promoted.They say mess up move up.

  • da truth

    police,fire,sreets plowed,garbage picked up, privatize everything else! keep the water system in city hands!

  • http://chicago.cbslocal.com/2011/05/11/emanuel-announces-city-council-reorganization-plan/ Emanuel Announces City Council Reorganization Plan « CBS Chicago

    […] City department heads have been told to trim their management payroll by 10 percent, which would nec… […]

  • http://chicago.cbslocal.com/2011/05/11/emanuel-announces-city-council-reorganization-plan/ Emanuel Announces City Council Reorganization Plan « CBS Chicago

    […] City department heads have been told to trim their management payroll by 10 percent, which would nec… […]

  • http://chicago.cbslocal.com/2011/05/12/shaw-transition-plan-will-keep-emanuel-accountable/ Shaw: Transition Plan Will Keep Emanuel Accountable « CBS Chicago

    […] CBS 2 Chief Correspondent Jay Levine reported that job and/or salary cuts must total 10 percent per … Non-union middle- to upper-management-level employees would be affected. The cuts could also be achieved by not filling open positions. […]

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