SEATTLE—February 13, 2003—Congress has enacted the 2003 appropriations bill that will severely challenge the Seattle Housing Authority's ability to serve its neediest clients. The appropriations bill reduces federal subsidy for housing authorities across the country to 90 percent of the previous year's level. That translates to a $1.3 million cut in SHA's public housing program.

Also, the Drug Elimination Program, which has provided the housing authority in the past with $1.5 million a year for resident support services, has been discontinued. This program provided funding for grants to other agencies providing programs to reduce drug abuse in SHA communities. It has supported two community police team officers who work at Rainier Vista and High Point.

The program also supports youth tutoring programs, the Promoting Assets Across Cultures program for High Point youth, and case management services for residents. Many of these programs will be discontinued in the coming year.

Congress is also reducing the amount of subsidy for capital improvements by $600,000. This will mean that capital projects already planned for Seattle's public housing buildings will be postponed.

In total, these budget cuts will reduce Seattle Housing Authority revenues by $3.4 million.

In response to these cuts, Executive Director Harry Thomas reports that, "The housing authority’s senior staff is already engaged in discussions of how we can look for new ways to do our business. We must figure out ways to streamline and simplify our processes."

Thomas explained further, "In order to balance the budget, we will be considering a wide range of cost savings strategies. This will include staff reductions in the public housing program and reductions in discretionary expenses. We will be looking at reorganizations to increase our efficiency and save money."

The 2003 Congressional appropriations will fund SHA's operating budget for the fiscal year beginning in October of 2003.