The Lynchburg Redevelopment & Housing Authority is dipping into its reserves to help offset reductions. The authority began the New Year with a reduced staff and smaller budget. The cutbacks were made due to sequestration that limited federal funding. The budgets for individual services and programs were cut between 7 and 31 percent since last year. Sources say the agency which runs the local public housing and Section 8 voucher programs, will work throughout the year to increase efficiencies and reduce administrative expenses. But will rely on reserves to make up the difference.