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2314 University Ave. #20
St. Paul, MN 55114
Phone: 651.642.1904
Fax: 651.642.1517
Greater MN: 1.800.289.1904

Email: info@mncn.org
**Update as of June 15, 2004 - The Governor took action in late May to balance the $160 million deficit for FY 2004-05 without using grant cancellations.  On June 14, Commissioner of Finance Peggy Ingison issued a memo to Commissioners and Agency Heads with the following instructions: "While we have decided to allow agencies to proceed with entering into grant agreements, please continue to be prudent in your judgments when incurring new obligations, considering the continued pressure we face in managing the state budget." **

Governor Pawlenty and Department of Finance take action to stop grants and review existing contracts for cancellation
In a letter dated Friday, May 7, 2004, Commissioner of Finance Peggy Ingison instructed commissioners and agency heads to take steps to reduce the deficit.  In addition to institute a 3% operating reduction for all agencies (except the Department of Corrections), the order instructs that:

"agencies should not incur any new obligations in general fund discretionary grant programs.  Those programs with agreements currently in place should be evaluated on a case-by-case basis and timely plans developed for cancellation in accordance with the agreement.  If this causes undue hardship in a particular case, please contact your executive budget officer to discuss special handling."

Many nonprofits currently applying for or finalizing grants with the state will be affected by the Governor's directive to stop the grant process.  In addition, since most nonprofits with grants in place have a 30-day cancellation clause, an unknown number of nonprofits will be affected if the plan to cancel contracts is put into place.

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2314 University Ave W. #20
St. Paul, MN 55114
Phone: 651.642.1904
Fax: 651.642.1517
Greater MN: 1.800.289.1904

Email: info@mncn.org