The Legislature continued funding of the Rural Economic Assistance Program (REAP), a major state aid program enacted in 1996 allowing rural areas to improve water and sewer systems, roads and other community infrastructure. The program targets small communities with populations up to 7,000, with communities under 1,500 receiving priority. With HB 1075, the transportation component of the program ($7.5 million) was combined with other funds now granted directly to substate planning districts. FY'98 REAP funding includes:

• $4.5 million in grants for the construction and repair of water and waste water treatment facilities. The Water Resources Board administers the program.
  
  
• $12.5 million for substate planning districts provides grants for improving health care, telecommunications, electricity, roads and other economic development projects. This part of the program is administered by the State Auditor and Inspector.