Lawrence city commissioners Tuesday received a nearly $1 million reminder of what’s at stake with President Bush’s proposed budget.

Commissioners at their weekly meeting gave approval to a plan to spend $911,227 in Community Development Block Grant funding from the federal government. The money represents the annual allocation the city receives from the U.S. Department of Housing and Urban Development. But Bush’s proposed budget calls for the program to be transferred into the Department of Commerce, slashed by 35 percent, and include new regulations that would add restrictions on how communities can spend the money. The budget issue is still pending before Congress.

“It is clear that the current funding isn’t adequate to address all the needs we have,” Mayor Boog Highberger said. “If we receive any more cuts we’re going to be at risk of drastically curtailing some important services.”

City officials have said the proposed changes would put at risk their ability to use the funds for homeless programs and other social services aiding the disadvantaged. Funding for homeless services is a major part of how city officials agreed to spend this year’s allocations.

The Salvation Army and the Lawrence Community Shelter will receive $53,365, a 26 percent increase over last year, to use for operating funds for their two homeless shelters. Greg Moore, chairman of the city’s Neighborhood Resources Advisory Committee, which makes the funding recommendations, said homeless services was a clear priority for the community.

“The number one thing that kept coming up in our goal-setting sessions was homelessness,” Moore said. “So we have made a concerted effort to fund those groups.”

Funding recommendations for most other organizations either were flat or decreased slightly. That’s because the $911,227 federal allocation is down from $963,000 the city received in 2004.

Two organizations that traditionally had received CDBG funding were rejected this year because of the decrease. Trinity Respite Care had sought $10,000 to help pay staff salaries, and First Step House, a program that provides housing services for women who are recovering from addictions, had requested $5,000 for operating expenses.

Teresa Martell, executive director of Trinity Respite Care, said rejection of the funding request didn’t jeopardize any programs but did make it more difficult to keep the organization’s services affordable to clients who are largely elderly or disabled.