Arlington County stepped in on Saturday to fill a gap left by the federal government when it cut funding to some local nonprofits. The County Board offered $221,088 in emergency funds to help make up for severe cuts in federal grant money for fiscal 2012 to nonprofits serving low-income residents.
The one-time payment is just a temporary solution, however, as county officials worry about what will happen in fiscal 2013.
“The cues from the Hill are not good,” said Jane Eboch, Arlington’s community development coordinator.
Eboch is preparing to tell nonprofits at a meeting Wednesday to plan for 25 percent cuts in 2013 and to consider eliminating programs.
The Community Development Block Grant program, one of the depleted federal funding sources, was reduced 16 percent nationwide for 2012. Eboch said Arlington has received that block grant for more than 30 years and these are the largest cuts yet.
“This is a significant hit. It doesn’t look like we’re going to come out of this tailspin,” she said.
The nonprofit Arlington Housing Corporation won’t have to make cuts this year, thanks to Arlington County’s emergency payout. But it is expecting to have to cut back on assistance to low-income homebuyers and homeowners in 2013, two programs that are funded by the block grant. The programs help finance closing costs for new homeowners as well as pay for repairs to existing homes.
And it’s not just Arlington — other area jurisdictions are scrambling to replace the lost federal funds. Alexandria covered its shortfall with an unexpected loan repayment. Montgomery County is paying for fiscal 2012 with stimulus funds. Fairfax County is still looking for funding options, and Tuesday its Board of Supervisors is expected to approve new spending priorities in light of the cuts expected for 2013.
Luann Korona, Montgomery County’s chief of community development, said she expects to cut homeowner assistance and youth programs in 2013 because of federal budget woes.
“We’re right in the cross hairs as entitlement programs. Discretionary entitlement, that’s us,” she said.
