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 city has spent much of its savings, News4's Tom Sherwood reported.
"The budget problem is quite serious," said Councilman Jack Evans. "And the difference this year than other times is we have no reserves left."
Democratic nominee for mayor Vincent Gray said he asked Fenty for the freeze right away.
"This will give us an immediate effort, an immediate action to be able to start to get a handle on this," Gray said. "It will stop spending, which could be runaway, frankly, as we move into this fiscal year."
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.
Gray said the freeze may just be the first step in a tough budget-cutting session.
Fan, Follow and Text: Get the latest from NBCWashington.com anytime, anywhere. Follow us on Twitter and Facebook. Sign up for our e-mail newsletters and get breaking news delivered right to your mobile phone -- just text DCBREAKING to 622339 to sign up. (Message and data rates may apply.)
