Budget Director Eugene Munin announced that the City will carry over $65 million from 2010 to 2011, a larger unreserved fund balance than he announced last month due to additional savings realized in the City's ongoing financial audits.
It will be the largest year-end reserve in a decade.
also said that the City
expects to save nearly $85 million for the remainder of 2011 as a result of the continuing savings from the hiring freeze and a reduction in healthcare and non-personnel expenses.
had previously announced $45 million worth of those savings.
also predicted that the budget gap between revenue and expenses would shrink for the 2012 budget by about 10 percent from the $655 million 2011 gap announced last summer.
"Looking forward into next year, and as a result of the modest increases in economically sensitive taxes and cuts on the expense side of the budget, we are currently projecting the 2012 budget gap to be approximately $587 million," Munin
and Saffold said that they have been meeting with the transition team for the next administration over the past several weeks, offering ideas and insight to where the City
might be able to further reduce the cost of government, demand more from every employee, and limit the impact of this recession on taxpayers.
said that for the first few months of 2011, economically sensitive revenues continue to come in at about level with the conservative projections made during the budget preparation last fall.
"While these revenue results and expense reductions are encouraging, they are by no means the total answer to our financial difficulties," Munin
"Even with these results, we remain at 2004 revenue levels while operating a government that has 2011-level expenses."
With the first two months of collections, Munin
said 2011 amusement taxes are exceeding budget expectations by about 4.4%, or roughly $750,000.
The year-to-date Real Property Transfer Tax receipts are up approximately 11% from this time last year.
said the City
must remain cautious and there are seasonal factors that effect home sales.
said that he
expects to see sales tax receipts continue to improve over the coming months.
Income Tax is also fairly even with projections.
said, however, that the State was considering withholding income tax payments to municipalities while the legislature debates the proposed borrowing plan.
"This is a bad idea, and it is unfair to local government," he
said, adding that he
has sent a letter to the State Budget Director outlining Chicago's objection to this plan.