Federal Cash Flow to Local Agencies Is Cut

The 20 agencies that receive federal money distributed by the county will share a cash pie that is at least 10% smaller next fiscal year and could be reduced by up to two-thirds.

The exact amount the county will see won’t be known for at least several weeks. But the bottom line is that every agency must make do with less, Board of Supervisors Chairman Frank Schillo said Tuesday.

“Everybody is saying they’re not going to be able to fulfill their contracts with their constituents, but I think for the most part everybody has accepted the fact they will be operating on less and they will have to raise money in other ways,” he said.

The money helps support everything from drug and alcohol rehabilitation facilities to libraries in unincorporated areas. It’s the first time the county has anticipated a cut in the federal money it receives, Schillo said. Republicans in control of Congress see reductions in money available for social services as one mechanism for paring the budget deficit, he said.

The uncertainty led the Board of Supervisors on Tuesday to allocate money from three separate federal programs at two different funding levels for the various agencies.

In Community Development Block Grants, the largest of the three federal programs, the best-case scenario would have agencies sharing a pot of about $865,000 after administration costs are deducted. At worst, that figure could drop to about $355,000.

The other two federal programs could see similar, and in some cases slightly larger, percentage drops in the amount of money available. The lowest figures for each will be used if no federal budget has been adopted by May 14.