Funding for EIAF grants are derived from state severance tax and federal mineral lease revenues. The volatile nature of the Impact fund combined with revenue declines means the grant program is suspended for FY 2010 - FY 2011. However, the EIAF program will continue and DOLA anticipates grant making once the state’s economy recovers from the worst recession since the Great Depression. Dollars for Direct Distribution to cities and counties will be available.
The following outlines the proposed reallocation that will immediately impact the grant program:
- Transfer of $5 million in Severance Tax revenue from the Energy Impact Assistance fund to the General Fund. This will permanently reduce the fund by $5 million and will be directed to the state’s General Fund.
- Transfer of $15 million in Federal Mineral Lease revenue from the Energy Impact Assistance fund to the General Fund. This will permanently reduce the fund and dollars will be directed to the state’s General Fund.
- An additional $30 million from the Energy Impact Assistance fund has been reserved for use in FY 2010/2011 in the event additional budget balancing measures are necessary.
The results of the reallocation of the Severance and Federal Mineral Lease dollars are as follows:
- Suspend 2010 applications - no grant awards after Aug. 2010. No additional Tier I or Tier II applications will be considered.
- The recent award of $6.8 million for Tier I and Tier II projects that had been suspended from 2009-2010, are not affected by this action. These awards will be announced on August 25, 2010.
