DETROIT (AP) _ Mayor Dennis Archer said Wednesday that the city must make significant budget cuts and other concessions to prevent a gaping deficit.

Citing an economic slowdown that predated last month's terror attacks, the outgoing mayor asked the City Council to have departments show how they could cut spending by 5 percent, or at least $60 million.

City Hall will also freeze hiring of all but essential workers.

``I do not propose these steps lightly,'' Archer said. ``The economy will eventually improve. Until then, we need to take the necessary steps now to insure the overall financial viability of the city.''

Archer said he hoped layoffs or pay cuts would not be necessary.

The city expects a $33 million budget shortfall in the current fiscal year, which began July 1, and Archer said that figure would grow unless the economy improves.

Archer cited an income tax shortfall of $47 million, as well as lower property tax collections and $12 million in extra police overtime.

The proposals came a month before the election to replace Archer, who is not seeking a third term. City Council President Gil Hill and state Rep. Kwame Kilpatrick will face off in the nonpartisan race Nov. 6.


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