HOUSTON -- Houston Mayor Annise Parker said the city will face some challenges as a result of a projected multimillion dollar budget gap for the rest of the year, as well as next year, KPRC Local 2 reported Wednesday.

The mayor has ordered city department leaders to make cuts, delay purchases and limit travel, but she is also turning to the city's three employee unions to become part of the solution.

"Layoffs are the last thing I want to do because that puts more unemployed people into a difficult economy," said Parker.

Melvin Hughes, the president of HOPE, said his group has drawn up a 10-point plan that will help save the city money. He plans to meet with Parker next week.

"I think if we sit down at the table and talk, we're city employees, we know savings and how to cut the fat," Hughes said after learning about the grim financial news at city hall.

The president of the Houston Professional Fire Fighters Association also plans to meet with the mayor, but Jeff Caynon said firefighters are expecting to cash in on promised pay raises during the month of June and December.

"Firefighters are like everyone else. We recognize the difficult situation and we're all in this together," said Caynon.

The mayor and City Council members learned Wednesday that the budget gap for the rest of fiscal year 2010 is estimated to be between $11 million and $20 million. Meanwhile, the projected budget gap for fiscal year 2011 is nearing $100 million.

The city controller blames part of the bleak financial outlook on lower-than-expected sales and property taxes.

"Hopefully the economy will rebound, but there will also have to be some cuts," said Green.