CHICAGO – Mayor Rahm Emanuel proposed a new city budget Wednesday that he says will put more police officers on Chicago's streets and more kids in early childhood education without raising taxes or fees. But he warned that without pension reform from Springfield, the financial gains the city has made "will go out the window."

The mayor's $8.3 billion spending plan closes an estimated $298 million budget gap by cutting 275 jobs, some of which the mayor's office said already are vacant, and reducing spending on professional services at city hall and health care for city employees.

The plan relies on an expectation of continued improvement in the economy, including growth in income and hotel taxes, both of which have increased this year as more residents go back to work and visitors occupy more Chicago hotel rooms. It also would add 457 new police recruits and 5,000 new slots in early childhood education classes and create a new small business center to help business owners.