US News

ACS FUNDING IS THREATENED

The city’s child-welfare agency could lose as much as a half-billion dollars in state and federal funds if it continues to deny mandatory raises to 28,000 workers, sources said yesterday.

After months of negotiations, the state is giving the Administration for Children’s Services until Dec. 31 to file reports assuring that it will dish out the $20 million in raises, according to sources and a document obtained by The Post.

The payouts will come in addition to $34 million the agency owes in retroactive pay since October 2007. It will inflate the agencies’ budget deficit to $116 million from the $62 million it is currently trying to plug, said ACS Commissioner John Mattingly.