Local nonprofits ‘don’t know’ extent of loss of funding

As across-the-board federal budget cuts loom, nonprofits are bracing for decreased funding for safety-net programs as they also predict increases in need.

Most immediately, they warn, furloughed federal workers could need help covering things like food or rent.

"I don’t think we’re really understanding the ripple effect that it’s going to have in the community," said Lisa Maru­yama, president and CEO of the Hawaii Alliance of Nonprofit Organizations. "It could put nonprofits in peril."

The so-called "sequester" is set to kick in Friday, triggering about $85 billion in cuts that White House officials warn will have widespread impacts on everything from airports to education to military readiness.

Nonprofits say they’re considering doomsday scenarios as they attempt to figure out how the cuts in federal spending will affect their bottom lines.

"The problem is, we don’t know" just how deep the spending cuts to nonprofits will be, said Norm Baker, chief operating officer of Aloha United Way. However, he added, "We know it’s going to impact us."

Baker said that even as nonprofits are planning for programmatic cuts, they’re preparing for an increase in people coming to them for help in covering basic needs.

Tens of thousands of federal workers in Hawaii face furloughs if the sequestration cuts are allowed to kick in.

Jan Harada, CEO of Helping Hands Hawaii, said many federal workers are living paycheck to paycheck.

"If the furloughs happen and they lose hours, that might be enough to push them over the edge," Harada said.

On the bright side, she said, the federal cuts are not expected to have a significant "direct impact" on Helping Hands Hawaii, which provides emergency rent subsidies and other assistance to low-income families.

But other programs are expected to take a direct hit.

For example, according to a list of projected cuts released by the White House, about $189,000 could be slashed to senior meal delivery programs statewide.

Lyn Moku, director of Lana­kila Meals on Wheels, said she’s not yet sure how much her program will be affected by the sequester, but she said any cut will be too much.

The program serves about 700 seniors with home delivery and 700 more with group dining. There’s also a waiting list of 150 seniors for home delivery services.

"There is already insufficient funding," said Moku, whose operating budget totals about $2.4 million a year. "Every day, we’re getting more requests (for help)."

Also on Oahu, Hawaii Meals on Wheels serves an additional 700 seniors each year. Executive Director Claire Shi­ma­bu­kuro said cuts to federal funding for meal delivery will have a direct impact on seniors.

"Our clients are often in their 80s and 90s," she said. "They’ve been hard workers and taxpayers all their lives."

She added that while federal spending on home meal delivery to seniors is considered "discretionary," it really shouldn’t be.

"Sequestration with regards to things like food for seniors should not be an option," she said.