www.2theadvocate.com/news/6566652.html -
[Cached Version]
Published on: 3/19/2007
Last Visited: 3/19/2007
East Baton Rouge Parish Housing Authority Executive Director Richard Murray is looking at cost-cutting measures that would affect services to the residents of the 1,153 public housing units the agency operates.
With the United States financing the largest part of the war in Iraq, Murray said, "most domestic programs are experiencing budget cuts."
"We've never seen anything as severe as we're seeing now," he added.During the past 20 years,
Murray said, housing authorities have received funding cuts from as little as 5 percent to as high as 13 percent.
With a 24 percent cut looming, he said, he is concerned about the ability to operate the housing units owned by the agency.
Most of the agency's funding comes from the U.S. Department of Housing and Urban Development, which distributes the funds through various programs, Murray said.
One of those programs is HUD's public housing operating fund, which covers the cost of operating the units.
HUD notified housing authorities in December that they would be funded at 76 percent of eligibility.The agency distributed operating subsidies Jan. 1, Murray said.
Currently, HUD is operating under a continuing resolution , a type of legislation used by Congress to fund government agencies if a formal appropriations bill has not been signed into law by the end of the fiscal year.
The money from HUD, along with rental income from residents, helps finance operations of the public housing program in Baton Rouge.
But, the parish housing authority can't just raise rents, because HUD controls the amount the agency can charge, Murray said.
The HUD funding formula is based on an amount per unit per month.Under that formula, East Baton Rouge is eligible for $2 million this year, Murray said.
"All we are going to get is 76 percent of that," he said.
Murray said the East Baton Rouge agency is going to take a hard look at its expenses.