Organizers of the Latin American Festival say the highly popular summer celebration is imperiled this year because of austerity measures being taken by the city and federal governments, which traditionally provide support services.

The city, facing a projected $95 million budget deficit, is cutting back on the estimated $67,000 in services it had promised to provide for the Adams-Morgan part of the festival on Saturday, July 28, the organizers said after meeting with city officials Wednesday.

That cut increases pressure on the organizers to raise $90,000 to pay for festival events scheduled for Sunday, July 29, on the Mall.

"As far as I'm concerned, Saturday is off," said festival president Arturo Griffiths. "We are going to be concentrating on Sunday. We are going to fight for the festival."

Officials with the city's Office of Emergency Preparedness, which coordinates city festivals, could not be reached for comment yesterday.

The austerity measures by both the National Park Service and the District may affect hundreds of other, smaller festivals held annually in the District.

Already, organizers of the Caribbean Festival have decided to move their celebration to Prince George's County, marking the first time in 14 years that the event has not been celebrated in the city.

Latin American Festival organizers said the city offered to provide limited support -- about $8,000 worth -- for the Sunday celebration. The city has offered to provide police service, fire and food inspectors, as well as to keep its incinerator facilities at Fort Totten Park open for Sunday's event.

But festival organizers said they were told that in addition to the cut in support services, the city could no longer give festival organizers $26,000 to help defray the expenses of the Park Service, which would provide support services for the Sunday event.

The Park Service has begun to strictly enforce a policy of requiring reimbursement for festivals not included in its own budget, said spokeswoman Sandra Alley. The Park Service had told organizers that unless the group posted a $90,000 bond by July 2, it would be denied a permit for the Sunday event. But Alley said the decision was postponed.

"This is a multicultural, multinational, multilingual city," Caribbean Festival President Carlton Joseph said. "These festivals generate popularity {for the city}. And the city needs that."

"They {Park Service officials} have effectively gotten rid of us," said Joseph. The September celebration was usually held on the Ellipse, drawing as many as 60,000 people, Joseph said.

Adams-Morgan Day Chairman John Jones said he is prepared to have the city charge for services. "The only thing I would ask is that we would have reasonable notice for it," he said.

But that's one complaint organizers of the Latin American Festival had yesterday.

Griffiths said that organizers of the festival, widely known as the Hispanic festival, had counted on money generated from sponsor fees on Saturday to pay the Park Service on Sunday.

"We don't have many options left," said one organizer, who asked not to be identified. "We're overwhelmed by the amount of money that is going to be lost by income from Saturday."

Originally, festival organizers believed they could raise $22,000. That money, coupled with the promised $26,000 from the city, would have given them more than half of the $90,000 that the Park Service wanted for its services Sunday. They had hoped to negotiate the size and time of the event to reduce some of the rest of the costs, which they believed were inflated, Griffiths said.

But now, organizers said, they probably can't raise more than $10,000.

Rita Soler Ossolinski, director of mayor's Office on Latino Affairs, said the city is still looking at options to help.

Now it's up to the Park Service to determine whether the Sunday event will occur.