Budget cuts and program reductions proposed by the Reagan administration for next year would cost the District of Columbia government about $64 million in direct federal grants and another $15.8 million in lost tax revenues and also would drive up the city's expenditures, according to a report prepared by the D.C. budget office.
Services to the sick, the aged, the poor, the handicapped, the unemployed, school children and refugees would be affected most, the report says.
An estimated 169 persons whose salaries are paid from federal grants would lose their jobs, in addition to the 1,200 who are being dismissed because of the termination of the federally funded Comprehensive Employment and Training Act, (CETA), according to the report.
Diana Carsey, the budget analyst who surveyed each city government department about the impact of the cuts, stressed the conclusions are tenative and could change after Congress completes work on the federal budget for the fiscal year that begins Oct. 1.
The potential revenue loss of nearly $80 million does not include benefits paid directly to individuals, such as food stamps and rent subsidies, which would also be reduced. Nor does it measure the loss of funds paid directly to voluntary or community-based organizations.
Overall, the report said, "The cutbacks will be felt intensely, with reductions occurring in jobs, sales and income tax receipts, social programs support, health and education, construction contracts and direct aid programs." s
Barry received a draft to the report last week. The mayor already has complained to Congress that the District, like other cities, would be hard hit by federal cuts occurring at the same time that its own budget problems are forcing reductions in locally financed services.
About $370 million of the nearly $2 billion that the city spends each year come from federal grants. Those grant funds generally are not affected when the City Council and Congress review the District's budget, but they form an essential component of the city's overall spending plan. Among the services the grant funds finance are lead poisoning prevention for children and housekeeping services for the elderly.
Carsey's report says the biggest single fund loss will be in the Medicaid program, which provides medical care for the poor. Changes in federal eligibility requirements and reimbursement formulas would cost the city $20 million, the report says. That is 10 percent of the city's total Medicaid budget for 1982.
Another $5.25 million is expected to be cut from the the funds for child welfare, foster care, adoption assistance, child abuse treatment, vocational rehabilitation and day care.
Loss of those services, the report says, could increase the District's own expenditures by forcing onto the welfare rolls some of the "marginal-income working poor" who are able to hold jobs because day care and elderly care services are available. The city's unemployment compensation costs would also rise.
The city's program of aid to more than 750 Cuban, Haitian and Indochinese refugee families would lose half its expected $2.08 million grant.
In the public school system, approximately $3.4 million is expected to be cut from school lunch and milk assistance. "Snack lunches would be cut out; [the] milk program would be eliminated," according to Carsey's report.
Some of the services now financed from federal grants will have to be provided anyway, forcing the District to reallocate its own scarce resources that are now committed to other programs, the report said.