Montreal cuts costs, faces deficit

Montreal will cut as much as $50 million in spending before the end of the year and has announced a budget freeze for 2011 in its effort to tackle a looming deficit.

Quebec's largest city faces a $400 million shortfall to balance its books, a deficit that has left council with the challenge of finding ways to "squeeze out and reduce expenses," explained executive committee member Alan DeSousa.

The recession has been "a tough one, and it's still being felt," said DeSousa, who is also Ville St-Laurent's borough mayor.

"We're trying to make sure the city is being prudent."

Boroughs and city departments have been ordered to reduce spending according to their own individual plans.

"The message has gone out to all of the mayors and department heads that from here to the end of July, they've got to come up with their plan," DeSousa said.

No department will be spared possible cuts, including public transit service and the police force.

The city will also reduce the number of managers in every department. The current manager-employee ratio is 1:9. Montreal wants to reduce that to at least 1:12, DeSousa said.

Freezing the 2011 budget will save the city about $100 million.