WASHINGTON (AP)—The D.C. mayor’s office says the city is planning to eliminate more than 1,600 jobs to balance next year’s budget.

Officials say 776 jobs will be cut through layoffs. Another 398 jobs will be cut through attrition, and 458 vacant jobs will eliminated, about 7.5 percent of the city’s 32,800-person workforce.

It’s the first time in more than a decade that the city’s budget will shrink. That’s because of a shortfall in revenue due to the nation’s slumping economy.

The D.C. Council can make changes to the budget before it is sent to Congress for final approval.