PROVIDENCE — The City Council is challenging all city department heads to cut their budget by 10 percent versus the budget submitted by Mayor David N. Cicilline as it hacks away at spending out of fear that Cicilline’s revenue estimates might be unduly optimistic.

John J. Igliozzi, chairman of the council’s Finance Committee, said he recognizes that it’s unlikely that every department would actually suffer the 10-percent cut. But all will be cut somewhat, and he wants the department directors to do it themselves, rather than have the council do it.

“We have to set a certain bar and we’ll go from there,” Igliozzi said.

“You’re the department directors; we’re looking for you to help us help the taxpayers,” Igliozzi told several department heads last night as they met to talk budgets.

Cicilline proposed a $636.3-million budget earlier this month, representing a 3-percent increase over the current fiscal year’s $616.7-million budget. It includes a 3.75-percent increase on the tax levy.

The budget covers the fiscal year starting July 1 and does not include money for salary increases for any of the city’s unionized employees, all of which are working under expired contracts.

But council members have voiced fears that the some of the revenue estimates in the mayor’s budget are overly optimistic and that the city may have to seriously cut back on spending to compensate.

Most departments did not get an increase in funding, or saw a small budget cut in Cicilline’s budget for 2009.

The council wants the departments to report back within several weeks with a list of possible cuts.

Francisco Ramirez, director of the Department of Inspections and Standards, said that he is struggling to do the job with the people he has and finished $120,000 under its $2.85-million budget only because there is not enough staff. Further cuts would seriously affect their work.

“If we take 10 percent out, it brings that challenge up for us,” he said.

Even department heads that are finishing this year healthy are worried. The Department of Public Works is expected to finish the year $1.1 million in the black on its $16-million budget. When told that he should find a way to cut 10 percent, Director John Nickelson warned of the danger.

“I think a 10-percent cut is going to be very, very difficult. A 10-percent cut, I think, will [mean] a reduction in service and I don’t think we want to do that.”

Some departments, such as parks, are scurrying to break even this year and further cuts for next year seem daunting. The city’s internal auditor recently projected that the Parks Department would come in $142,000 in the red on its $8.5-million budget but Parks Director Robert McMahon said that cost savings, cutbacks and differing projections have the parks budget close to even.

A 10-percent cut would be tough, he said.

“It’s going to be difficult for us. We’re not in a position to cut personnel.”

Considering their situation, Councilwoman Josephine DiRuzzo said she was sympathetic.

“The only thing I want to see him cut is grass,” she said.

dbarbari@projo.com