Chicago facing $654 million deficit

CHICAGO, July 31 (UPI) -- Chicago is facing a budget shortfall of more than $654 million, but Mayor Richard M. Daley said he would not raise property taxes next year.

Instead, officials will look at other options as a way to fund a proposed $6.3 billion city budget, the Chicago Tribune reported.

Pay hikes and increased healthcare costs contributed to a proposed budget increase of $207 million over the current year, the newspaper said.

City officials are looking at several proposals to generate additional funding, including a plan to lease Midway Airport and tapping economic development funds that exist in special taxing districts.

"We are first going to consider the expense side of the budget," city budget director Gene Munin said. "We haven't taken any other revenue items off the table."

A proposal to lease the South Side Midway Airport for 99 years for a payment of $2.5 billion could generate additional money, but the deal fell through last year, the Tribune reported. However, the Federal Aviation Administration has given the city an extension in its deadline to make a new airport lease deal.