SCHENECTADY — With the economy in a downturn, demand at a local food pantry is rising.

The Schenectady Inner City Ministry, which moved to 930 Albany St. hands out food baskets to people so they can make meals at home. It anticipates giving out enough food to make more than 300,000 meals this year — a 20 percent increase from last year.

The Rev. Phillip Grigsby, executive director, said people have come to depend on the food pantry — especially at the end of the month when food stamps run out.

“We are seeing more and more working poor — people who are working two jobs, sometimes without benefits and there’s not enough to get by,” he said.

The ministry was hit with a 5 percent cut in its grant funding as a result of state budget reductions. On Sunday, it held the first-ever Harvest for the Pantry dinner and silent auction at First United Methodist Church to raise $10,000 toward the program. Fifteen restaurants donated food toward the event.

“It’s really wonderful the outpouring of concern. The restaurants have been very generous,” he said.

There were also auction items including artwork, a weekend at a cabin in the Adirondacks and an hour of financial planning. Double bass player George Rush and guitarist George Seror provided musical entertainment.

About 5,600 households are served by the food pantry, which is open from 9 to 11:30 a.m. Monday, Wednesday and Friday.

The pantry purchases its food at a rate of 16 cents a pound from the regional food bank. “We can buy a case of Corn Flakes — like 12 boxes — for the same price that if you went to the market and bought one box.”

Food Program Manager Gail Van Valkenburgh said the organization has seen an increase of 900 families since the beginning of the year. In its new location, it has more room to serve more people. Before, they often had to shut the pantry down for the day after they had reached capacity.

Henry Dlugozina of Schenectady was among the 200 guests enjoying a meal and bidding on silent auction items. He said he used to be a volunteer for SICM. “Things are getting worse for everybody at the present time.”

Barbara Markey is also a longtime volunteer for SICM.

“It makes you very aware of how other people live, what they don’t have,” she said.

Crystal Bedard of Schenectady said SICM definitely serves a need in the community.

“It’s good to know that they have a place where they’re always welcome,” she said.

Participating restaurants were Ambition, Bangkok Bistro, Canali’s, Center Stage, Chef Nicky, Ferrari’s, Gepetto’s, Gershon’s Homestyle Caterers, Roman Villa, Starbuck’s, Stewart’s, Stockade Inn, Turf Tavern and the Winedown Lounge. Hannaford and Price Chopper also provided support.

To make a donation to the food pantry, sends check payable to SICM Food Pantry at 930 Albany St. Schenectady, N.Y. 12307-1514.