June 16, 2016-Funding Update
While the price of oil has shown improvements in recent weeks, a shortfall of revenue from the gross production tax collections that flow into the oil and gas impact grant fund continues to exist. Grantees will be notified of any change in status should that take place.
February 25, 2016
The revised state revenue forecast released on February 1st projects that the oil and gas impact grant fund will receive only $28.6 million of the $140 million appropriated by the 2015 Legislature.
All grants for projects not yet started, or where obligations have not yet been made by the grantee, are suspended. This suspension is made with the understanding that an obligation still exists; reimbursement may occur when State funding becomes available. However, grantees should know Energy Impact funding may not be available for some time.
Additionally, remaining grant rounds for the 2015-2017 biennium have been postponed. While the Legislature earmarked many grant areas, that appropriation is based upon the availability of funds. If a grant has not been approved by the Land Board, there are no state funds formally committed. If funding becomes available, the grant round schedule will be reconsidered.
We understand that this unfortunate situation may affect your community’s and agency’s plans, however, these steps are necessary due to the significant reduction in available grant funds. Grant specific details will be provided in the coming days.
Your understanding is greatly appreciated!