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Chicago's 2008 Revenues Drop More Than Predicted

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Chicago’s top financial officer says the city took in less in 2008 than predicted just a few months ago. That has city leaders looking for ways to save money and cut costs.

Chicago brought in $31 million less last year than it expected. That’s according to Chief Financial Officer Paul Volpe, who Mayor Richard Daley recently made his chief of staff. Volpe says if the economy continues to lag the city might have to tap a $325 million rainy-day fund.

VOLPE: Certainly where we have areas where we have sharp unexpected declines in revenues and increases in expenses we would look to using that fund in a responsible and prudent way. It’s clearly there to bridge the gap until the nation’s economy starts to grow again.

Volpe says the city collected tens of millions of dollars less in income tax and real-estate transfer tax. He says heavy snowfall in December also cost the city about $4 million more than expected.

I’m Tasha Flournoy, Chicago Public Radio.

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