- Associated Press - Monday, October 4, 2010

WASHINGTON | D.C. Mayor Adrian Fenty is halting city hiring and other spending to deal with a projected $175 million budget crunch.

Fenty issued the order Monday, and it takes effect Wednesday. The order freezes salaries and most new hiring, as well as most travel and training.

It also requires agencies to cut 10 percent in spending for things like supplies, equipment and consultants. The order is projected to save $126 million — $100 million from the budget cuts and $26 million from the hiring freeze.

The order comes after the city’s chief financial officer said last week that the city is facing a projected $175 million deficit for the fiscal year that began Friday. The deficit is the result of a projected $75 million in overspending and a projected $100 million shortfall in revenue from taxes.

 

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