Federal cuts affect local nonprofit organizations

LAFAYETTE, Ind. (WLFI) - Federal budget cuts should have a negative impact on a number of area nonprofit groups. Places like Food Finders Food Bank are expecting a 5-percent drop thanks to cuts in the Community Development Block Grant program.

Earlier this week, just days after the sequester took effect, Lafayette and West Lafayette received e-mails from  the federal government stating Community Development Block Grant funds for both cities will be cut. A portion of those grants is used to provide funding for a number of area nonprofits.

"It's our understanding that those grants are going to be cut by about 5 percent," said John Dennis, West Lafayette Mayor.

Five percent for Food Finders Food Bank means $600.

Executive Director Katy Bunder said the organization has learned to prepare for the worst over the years. Though this year, she thought they were safe.

"For the last four or five years, those grants have been diminishing. So every year, we take a cut. This year we were told, it's unlikely there'll be a cut," Bunder explained.

Bunder said this cut is just the beginning. She said Food Finders is planning on more cuts resulting from the sequester, which could take a toll on the nonprofit organization.

But Bunder said the cuts are not the organization's number one concern.

"If the economy quits recovering because of sequestration, then more people are going to be unemployed and more people are going to be in need of food assistance and that is the biggest thing that's going to hurt us," Bunder said.

Bunder said there's a direct correlation with the unemployment rate and how many people go to a food pantry and need food assistance. She said only time will tell how Food Finders keeps up with the cuts.

Dennis said the block grant cuts will have a noticeable impact on both West Lafayette and Lafayette. He said nonprofits will have to find a way to deal with the cuts.