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Used Oil Competitive Grants’ Cycle Frequency and Funding Levels (Used Oil Recycling Fund, FY 2006/07 and FY 2007/08). Oil Program Statute. Grant and Outreach Programs: Block Grants (administered annually) Competitive Grants (OG, UNP, URD) Annual award not required
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Used Oil Competitive Grants’ Cycle Frequency and Funding Levels (Used Oil Recycling Fund, FY 2006/07 and FY 2007/08)
Oil Program Statute • Grant and Outreach Programs: • Block Grants (administered annually) • Competitive Grants (OG, UNP, URD) • Annual award not required • Funding is continuously appropriated - Outreach and Education
Funding Framework Funding Framework: • Cycle Frequency • Funding Levels
1. Cycle Frequency • Local Program Need • Regular & predictable funding • Time to evaluate effectiveness • Three Options for Cycle Frequency: • Annual • Biennial (Board adopted Nov. 2001) • Other Cycle Options
Annual Cycle: Recommended • Each grant is awarded annually • Effects are: • Most responsive to fluctuations in Fund Condition • All Stakeholders eligible for grants • Potential for overlapping grants • Lack of program evaluation • Lower funding levels for each cycle
Biennial Cycle: Not Recommended • Each grant awarded every two years • Current Board model • Biennial Cycles have been successful: • Predictability • Funding flexibility • Less focus on administration, more on project management & evaluation • Does not limit available funding for local government
Other Cycle Options: Not Recommended • Any cycle other than Annual/Biennial • Effects are: • Flexibility on when to award • Unpredictable cycles • Decreased administrative tasks • Funding flexibility
2. Funding Levels • Two Issues: • Total annual Competitive Grant funding • Funding amount for individual Competitive Grants
Statutory Framework for Funding Levels Total Resources – Mandatory Expenses “ Remaining Balance”
Statutory for Funding Levels for Grants: 60% Minimum Grant Percent of Remaining Balance OG Minimum 40% UNP Minimum 10% URD 10-15% maximum
A. Total Annual Competitive Grant Funding • Other Board Options: • Increase total grant $ up to 80% • Decrease total grant $ below 60% • Preferred Option – 60% level • Prudent carry-over • Obligation to stakeholders • Facilitates local planning
Funding Framework: Annual Cycles after 4 yrs • Scenario 1: No Grants in 06/07; Annual Grants Year 2 Result: 7 OG grants 1.5 NP/R&D grants • Scenario 2: Statutory Min. 06/07 Annual Grants Year 2 Result: 6 OG grants 1.5 NP/R&D grants
Funding Framework: Biennial Cycles after 4 yrs • Scenario 3: Biennial 15/45/60 Result: 3.8 OG grants 6.7 NP grants 2.2 RD grants • Scenario 4: 15/15/60 Result: 6.7 OG grants 2.3 NP/R&D grants each
B. Preferred Funding Framework • Annual Cycle • Defer Grant Funding until FY 2007/08 • 60% total annual limit for competitive grants • UNP = 10% of remaining balance • URD = 10% of remaining balance • OG = 40% of remaining balance • Joint Solicitation of 3 Grants • Offer Grants earlier (July-Sept)
Recommended Action for Cycle Frequency & Funding Levels • Choose • Option #2 Annual Cycles beginning in FY 2007/08 • Adopt Resolution #2007-35 with revisions