Austin feels constraints of federal budget impasse

AUSTIN (KXAN) - Mayor Lee Leffingwell says he has received a letter from an official with the U.S. Department of Housing and Urban Development tell him to brace the city for the coming effects of the federal budget impasse.

“It’s clear that we are just beginning to see the effects of sequestration at the local level,” said Leffingwell. “The letter we received (Monday) does not include specific federal budget reductions but is informative in setting expectations and says we can expect 5 percent reductions. As elected officials and administrators locally, we find ourselves in a very unfortunate position.”

Deputy HUD Secretary  Maurice A. Jones told the mayor in his letter that the sequestration will mean substantially less federal money flowing to Austin.

"Based on our initial analysis, it is likely that your full-year (fiscal year)   2013 formula program funding will be lower that it was in FY 2012 due to the sequester, which may affect your workforce and planning for this year, and possibly beyond," Jones wrote.

"You can expect 5 percent reductions from the FY 2013 annualized Continuing Resolution levels for the formula programs you are eligible for, including the Community Development Block Grant (CDBG), HOME, Housing Opportunities for Persons With AIDS (HOPWA), and Emergency Solutions Grants for the homeless (ESG) programs."

Leffingwell said his office has not received letters from any other departments.

"But we expect to see the effects of the across-the-board $85 billion federal cuts in the coming weeks," he said. "At the local level, Austin will need to find ways to make up for the cuts in order to help those in our community who rely on these programs the most."