Mayor's problems could cost city aid

SACRAMENTO, April 1 (UPI) -- A lawyer says that Sacramento, Calif., could have trouble getting federal aid because its mayor is on a list of those excluded from federal contracts.

Mayor Kevin Johnson's problems with the federal government predate his election as mayor, the Sacramento Bee reported. He founded Hood Corps, an organization using a Peace Corps approach in Sacramento.

The Corporation for National and Community Service placed Johnson and Hood Corps on its suspension list last year after a preliminary investigation found that a $807,000 federal grant was improperly used.

Johnson's lawyers have written the agency, suggesting that the suspension is unfair. The issue is important because Frederic Levy, a Washington a lawyer hired by the city, recently wrote a memo that said Johnson's debarment could prevent the Sacramento from getting federal stimulus funds.

The city has not made the memo public, arguing that it contains confidential information. The Bee said that it obtained a copy.