CLEVELAND -- The city's budget is struggling with the same issues you are -- soaring gasoline costs, rising health care bills and more.

Mayor Frank Jackson is making what he calls a midstream adjustment, ordering belt-tightening to avoid the need for more drastic steps like layoffs.

Jackson met with 500 managers and supervisors and laid down the law. There's now a hiring freeze and overtime must be cut by 10 percent.

Gasoline use by city vehicles will also be reduced by ten percent. Overall energy costs should be reduced by ten percent over the next three years.

A tight lid will be clamped on purchasing of materials and supplies. Travel on the city will be allowed only if it's absolutely necessary.

Mayor Jackson says police cadet classes already scheduled will continue.

"The public will not see a reduction in quantity or quality of service," Jackson said. "If we do this right it will take away necessity for drastic measures in 2009."

He says this year's budget will be balanced with carryover dollars. Right now projected spending will exceed expected revenues by $24 million.

The city's last round of layoffs occurred under Mayor Jane Campbell.

Mayor Jackson said County Treasurer Jim Rokakis are projecting the city will take a big hit in lost property taxes soon because of foreclosures.