The San Antonio Budget Department released an impact report to city Council Wednesday on the possible effects Sequestration would have on our city's Fiscal Year 2013 and Fiscal Year 2014 Budgets.

The report indicates that most of the impact to our city wouldn't be felt until FY 2014, and identifies three specific areas that would be targeted.

"The three areas include impacts to those programs that are funded through our federal grants, also the impact to our International and Stinson Airports, and also the impact to the subsidy that we get from the federal government on some of our Build America Bonds," said Maria Villagomez, San Antonio Budget Director.

Villagomez said Sequestration would have a significant impact to 16 grants that are funded by the $150 Million the city annually receives in federal grants.

"We're anticipating that roughly $140 Million in grants will be impacted," said Villagomez. "One of the largest grants is Headstart; the Childcare Services Grant is the second largest grant that we receive."

Villagomez said the effect to Headstart is already being enacted at this time in terms of the number of students it would be able to serve next year.

For our current fiscal year 2013, we're anticipating $1.7 million in reductions, particularly to the Childcare Services Grant", said Villagomez."We were notified on Friday to freeze any new registration to the program, and through attrition to get  to a new target amount."

The report claims the Federal Aviation Administration's plans to reduce $600 Million through September 2013 could possibly effect San Antonio International, depending on what changes larger airports like Dallas-Fort Worth make.

The report predicts effects would be seen in possible closures to full-time and nighttime traffic control towers and furloughs of FAA staff.

The city is already making plans to reduce staff at Stinson Municipal Airport, according to the report. As of April first, the city is planning to operate the airport on the UNICOM system at all times, which would require pilots to converse with each other regarding landing and take off patterns, rather than with the air control tower.

The report claims that subsidy payments to issuers of Build America Bonds were reduced by 8.7 percent at the beginning of March, which could have a potential impact of $166,000 in federal subsidy dollars to the city's FY 2013 budget only

By: Marissa A. Wagner
Wednesday, March 6, 2013
6:45 p.m.