The city's highest-paid non-unionized employees will be furloughed for a day as part of an effort to reduce next year's projected $217 million budget deficit, Mayor Richard M. Daley announced today.

"This is a hard thing to do, but it is necessary," Daley said.

The furlough applies to non-union personnel making more than $55,000.  The city earlier announced that workers making more than $75,000 will have an unpaid day off. Today's announcement means they will have a second one.

The city is asking unionized workers to take furlough days as well, Daley said. But it is unclear whether the unions will honor that request.

Other cuts announced today include:

• suspending all non-emergency overtime not related to public safety
• a hiring freeze across all city departments, not including public safety
• a two percent across the board reduction in  non-personnel spending.

Those cuts, together with other previously announced moves, will save $17 million.

"There are a number of reasons for the deficit," Daley said. He cited including rising salaries and benefits, and the slowing housing market as reasons for the projected deficit.

During the press conference Daley ruled out a number of other options for closing the budget gap, including lay-offs, tapping into the skyway project, and the use of casinos.

Daley also highlighted some of the other programs that have been enacted to save the city money, including making it easier to do business with the city online, which has saved $5 million, and a city employee wellness program which has saved $2.5 million.

"Controlling spending and improving how we manage government are things that are withing our control," said Daley.