CENTRAL CITY, Colo. -- Funds that pay for police, ambulances, and victim's services are frozen due to budget cuts, but also can't be used without a change in state law.

It's the timing that's putting the squeeze on many groups connected to gambling towns.

October is normally when they would apply for the funds, administered through the Department of Local Affairs (DOLA) in November and December.

Those grants, collected from gambling revenues, totaled $6.8 million in 2008 and benefitted groups such as Boulder County’s Nederland Teen Center, Gilpin County's Eagle’s Nest Child Care, and several district attorney's offices.

Mountain Family Health Clinics got nearly a quarter of a million dollars last year.

But even as the only medical clinic in Central City, the freeze has them scrambling.

"We are having meetings. We're starting to talk. We are having meetings and talking about, are we going to need to cut some of our services?" said Cathy Jones, director of nursing. "The need was identified 30 years ago. The need is still there. So it will have a huge impact on us."

The director of a victim's advocate group said it's ironic too. As gambling limits and hours of operation have expanded since January in accordance with new state law, their calls for domestic violence, suicide, and other gambling related problems have gone up roughly 10 percent.

"If we had alternatives, we'd be the first to say keep this program. It's good stuff. There's nothing on this list that isn't good," said Susan Kirkpatrick, executive director of DOLA.

Instead, she sent letters to past recipients in August, warning them that the funds would not be coming.

Now, it’s up to state lawmakers or the $5.5 million being held this year won’t help anyone.

Those funds cannot be used for any other purpose or put into the state’s general fund without a change in state law.

"We probably will not get into, y’know, a legislative debate on this until January or February. By that time, we’re holding up a lot of money that’s probably needed right now,” said Rep. Kent Lambert/(R) Colorado Springs.

As a member of the Joint Budget Committee, Lambert said he doesn’t believe lawmakers will agree to cuts to these programs, even though another $240 million has to be cut from the 2010 budget.