Agenda - Council - 10/14/1980 - Laserfiche WebLink

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September 12, 1980 Dear Program Manager: The State of Minnesota faces a shortfall in anticipated revenues that could amount to approximately 190 million dollars. Since a balanced budget is constitutionally required, the State must trim its spending by that amount by the end of this fiscal year. Therefore, Governor A1Quie has directed all state agencies to trim their budgets. At this point, it appears that the Shade Tree Program's total budget reduction will be approximately $7.6 million, but no funds currently promised to local communities will be withheld. The Shade Tree Program's budget cut will be in the following areas: --The unencumbered 5.6 million dollars frbm the 1977-78 biennial appropriation for sanitation and reforestation grants will be cancelled and will revert to the State Treasury. --Two million dollars from the 1979~80 biennial appropriation that had not yet been applied for by communities for sanitation and reforestation grants will also revert. --Only $13,000 of the appropriated $t84,250 in wood utilization. grants for metropolitan municipalities will not be available. --$6,400 of the appropriated $90,750 will not be available for non-metropolitan wood utilization grants. --$14,200 of the $200,000 experimental grants appropriation will not be spent. --$.11,187 of money budgeted for administration will not be spent. What does this mean? While approximately $7.6 million is being reduced from the sanitation and reforestation grant money, this is money that con~nunities have not applied for previously. Instead of being held in reserve for future use, this money will now be returned to the state's general fund. This means that the Shade Tree Program will meet all its financial obligations to every community now in the Shade Tree Program.