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<br />Cities funding ~'The Big fixPP D~ mom ways than lOA
<br />
<br />Remi Stone
<br />
<br />In addition to the $214 million cut in
<br />city aids. the governor's budget plan
<br />slashes additional programs that have
<br />traditionally supported cities, counties.
<br />and towns in implementing state
<br />mandates and improving Minnesota's
<br />quality of life. Adding salt to the wound,
<br />cities will see increases in fees paid to
<br />the state. Some of the proposed agency
<br />cuts and fee increases are listed below.
<br />
<br />Misll~ ~oIiutioU!l ~ ~cy
<br />o IMICI.'r quality fee increase. Increases
<br />water quality fees by approximately
<br />25 percent in FY 2003 and decreases
<br />MPCA's General Fund appropria-
<br />tion for water programs by an equal
<br />amount, On-going reduction in
<br />General Fund appropriation is offiet
<br />by the fee increase. Fees will be
<br />deposited in the Environmental
<br />Fund, and the MPCA's appropriation
<br />&om the Environmental Fund will
<br />be increased to a tune of$643,000
<br />annually,
<br />Red,/ce Clean Water Partnership Grant
<br />program, Reduces General Fund
<br />appropriation for the CWP grant
<br />program by 10 percent beginning in
<br />FY 2003, Three to four projects will
<br />be impacted and the proposed budget
<br />cuts the fund by $234,000 annually.
<br />
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<br />o SCORE Grant Reduction. Reduces
<br />SCORE grants to counties by
<br />10 percent, in the amount of
<br />$1,401,000 annually. To offset these
<br />cuts, OEA recommends counties be
<br />allowed to use solid waste process-
<br />ing payment funding for SCORE
<br />activities. Currently, the credit may
<br />only be used to lower tip fees at
<br />waste processing facilities (MS 115A.
<br />545).
<br />SCORE grant money is provided
<br />to all Minnesota counties and Western
<br />Lake Superior Sanitary Districts to
<br />support and expand services to
<br />prevent waste generation, foster
<br />reuse of materials, and expands
<br />
<br />recycling. Every county receives a
<br />minimum of $55,000 per year with
<br />additional funds disbursed based on
<br />population.
<br />o Reductions to grant and loan programs.
<br />Scales back OEA's competitive grant
<br />program and its newly established
<br />revolving loan program by 10 per-
<br />cent or $208,000 annually. OEA's
<br />grant program promotes environ-
<br />mental education, pollution preven-
<br />tion, resource conservation. waste
<br />reduction and reuse. recycling. and
<br />market development of recyclables,
<br />Those eligible include Minnesota
<br />businesses, public entities, nonprofit
<br />organizations. schools, and others
<br />involved in improving Minnesota's
<br />environment. The revolving loan
<br />program is intended to provide
<br />low-interest loans to Minnesota
<br />businesses to make environmental
<br />improvements to their operations,
<br />
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<br />o Grant reductions, General fund pass-
<br />through grants will all be reduced
<br />by $1,197,000 in FY 2003 and by
<br />$698 yearly thereafter. The largest
<br />reduction is $800,000 to the
<br />Metropolitan Council for parks and
<br />trails.
<br />o Transfer from Future Resources Fund.
<br />Cancel the remaining balances in
<br />several Future Resources Fund
<br />projects: Mcquade Road, Gateway
<br />Trail. local initiative grants, regional
<br />trails, outdoor recreation grants, and
<br />shooting range grants. Transfer of
<br />the projects' $2 million will be
<br />diverted to the General Fund.
<br />
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<br />o Grant reductions. Because BWSR
<br />issues all its grants in the first few
<br />months of the fiscal year. the entire
<br />reduction in the 2002-03 biennium
<br />had to be taken in FY 2003. The
<br />reduction was evenly divided in
<br />'04-'05, resulting in a 4.8 percent
<br />biennial reduction. Cost share,
<br />
<br />natural fl.'Sources block grants, and
<br />general services grants are all
<br />reduced. The fact that substantially
<br />more grant dollars were cut than
<br />administrative dollars reflects the
<br />large portion of the agency's budget
<br />that is passed-through to local
<br />governments and amounts to
<br />$3.276.000 in FY 2003 and
<br />$1,371,000 annually thereafter.
<br />
<br />lJ{]atMrni~ ltCi!iIaJ~ ~y
<br />o Reduce Rehabilitation Loan program,
<br />Reduces funding for the Rehabili-
<br />tation Loan program by 12 percent.
<br />The average loan amount is S 11.000,
<br />Approximately 90 fewer loans will
<br />be made if this reduction is made
<br />with a total cut of $496
<br />o Reduce housing assistancefimding.
<br />Reduces down payment and closing
<br />cost assistance for low-income, first-
<br />time homeowners. The average
<br />assistance payment is $4,000, More
<br />than 200 new homeowners will not
<br />be assisted if this reduction is made.
<br />o Reduce the Challenge Program.
<br />Reduces the Challenge Program
<br />that utilizes employer match contri-
<br />butions and private foundation
<br />funding to develop or redevelop
<br />rental and homeownership units.
<br />The average assistance per unit is
<br />$9,500, This program includes a
<br />$400,000 lead abatement program
<br />that would be completely elimi-
<br />nated, Approximately 460 house-
<br />holds will not be served if this
<br />reduction if made.
<br />o Eliminate the mamifactured housing
<br />program. Eliminates down payment
<br />and gap financing to replace or
<br />upgrade manufactured housing. The
<br />average assistance is estimated to be
<br />$14,000. Funds &om the Challenge
<br />Program could be utilized for this
<br />purpose. Approximately 30 house-
<br />holds will not be served if this
<br />
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