2002-01-31_AgendaPacket - Laserfiche WebLink

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Central O~ce: One West Water Street ^ Serite 200 ^ Saint Paal MN 55107. `/~/rone: (651J 296-3767 faX: ~651~ 297-5615 January 22, 2002 Dear BWSR clientele: Earlier this month, Governor Jesse Ventura announced his plan to deal with a projected state budget shortfall of $1.8 billion. As part of the Governor's plan, the Board of Water and Soil Resources faces a 10 percent permanent reduction to its operations and grants budget. The purpose of this letter is to provide information on BWSR's budget reduction plan. First, let me provide some background. on how we came to our decisions. We approached our process with the following principles in mind: to continue our commitment to ongoing capacity of local governments; preserve the base-level funding for local governments; seek reform for efficiency and effectiveness of delivery; and continue our commitment to natural resources outcomes and legislative mandates. As you read on, you will see that these cuts will impact the way BWSR does its business. I want to assure you that we are doing our best to minimize the impact on your operations and that BWSR will continue to provideservice at the high levels to which you are accustomed. The agency's reduction is based on the FY 2002-03 biennial budget appropriation of $37.99 million. Under direction from the administration, reductions must be taken. from both operations and grants appropriations. Part of the difficulty for us is that significant portions of the FY 2002 grant dollars have already been distributed: That puts the majority of our budget reductions for this biennium into the FY 2003 budget. Information sheets are enclosed to provide further analysis. The budget plan includes a permanent reduction of $523,000 in the operating budget beginning in FY 2003. It also includes a reduction of $3.276 million in the agency's grant programs in FY 2003, with a permanent reduction of $1371 million per year in grants. For FY 2003, that means elimination of Challenge Grants, Special Projects Grants, and Special Minnesota River Grants, and reductions in base grants for Area II, Cost- Share, General Services, and the Natural Resources Block Grant program. Reductions to base grants taken in FY 2003 will be restored in the FY 2004-OS biennium; however, the agency's plan for permanent reductions for grants will be to eliminate all competitive grant programs. Additionally, the agency will eliminate funding to the Area II program after FY 2003. Funding for the Feedlot Cost-Share program will not be reduced in order to continue the state's commitment to addressing feedlot issues. The reduction plan does not impact our operations for the Conservation Reserve Enhancement Program either since bonding funds that program. Bemid"i Brainerd [7ulath feryas fal/s Marsha// New Ulm /Zachester Saint ~aNl 3217 Bemidji Avenue N. 217 S. 7th Street 394 S. Lake Avenue 413 W. Stanton Avenue 1400 E. Lyon Street 261 Highway 15 S. 40 16th Street S.E. One West Water Street Bemidji, MN 56601 Suite 202 Room 403 Fergus Falls, MN 56537 Box 267 New Ulm, MN 56073 Suite A Suite 250 phone (218) 755-4235 Brainerd, MN 56401 Duluth, MN 55802 phone (218) 736-5445 Marshall, MN 56258 phone (507) 359-6074 Rochester, MN 55904 Saint Paul, MN 55107 fax (218) 755-4201 phone (218) 828-2383 phone (218) 723-4752 fax (218) 736-7215 phone (507) 537-6060 fax (507) 359-6018 phone (507) 285-7458 phone (651) 282-9969 [ax (218) 828-6036 fax (218) 723-4794 fax (507) 537-6368 [ax (507) 280-2875 fax (651) 284-0000 Web: www.bwscst ate.mn.us TTY: (800) 627-3529 An equal opportunity employer Fd Printed an recycled oaoer