City's Revenue $31M Under Budget

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    NEWSLETTERS

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    CHICAGO - JUNE 23: The Sears Tower dominates the skyline June 23, 2006 in Chicago, Illinois. Federal agents in Miami yesterday arrested several men for conspiring to work with al-Qaida to blow up Chicago's Sears Tower and several federal buildings. (Photo by Scott Olson/Getty Images)

    Chicago officials say an unexpected $31 million revenue deficit may force the city to take cost-saving measures or tap its rainy-day fund.

    Chief Financial Officer Paul Volpe said the city earned $20.5 million from a real-estate transfer tax in the last three months of 2008 instead of the budgeted $30 million.

    He says sales tax revenue decreased by millions of dollars in September and estimates for the remaining months of 2008 aren't optimistic.

    Volpe said income tax revenue is also dropping.

    Meanwhile, the city spent $4.3 million more than what was budgeted for snow removal last year.

    Chicago could tap a $325 million fund that will be created by the $1.2 billion, 75-year lease of city parking meters to a private