The Ministry of Housing and Social Development has lifted a freeze on gaming grants to local arts, cultural and sporting groups.

For over 65 Prince George community groups, the grants provide a crucial part of their annual budget. A spokesman for the ministry said the freeze was put in place to conduct a comprehensive review of the grants, and $159 million in gaming revenue will now be disbursed.

Funding for capital projects, playground grants and three-year grants will not be available this year. In addition, only a limited number of arts and cultural programs will receive funding and funding levels may be reduced for some programs.

Prince George Conservatory of Music administrator Grace Bosma said she was never informed by the ministry about the freeze. The conservatory board met recently to discuss how to continue if they don't receive their usual grant.

"We were just not sure how we were going to manage," Bosma said. "We need this gaming money to pay our rent. That's the first cheque that is paid out of that account every Sept. 1."

In addition to ensuring the conservatory has a place to practice and play, the funding is used to help put on six concerts a year.

"That's imperative for young members to have an orchestra to play in. It's a training and mentoring orchestra," she said. "For the first year we would use our savings money. For the next year, I don't know where it would come from."

Gaming grants represent nine per cent of the conservatory's budget, she said. It allows the conservatory to keep tuition costs for its 350 students affordable.

Non-profit organizations are in a crunch because sponsorship and donations have fallen as people tighten their belts, Bosma said. Raising tuition costs for families, when many are struggling already, would mean many students wouldn't have the opportunity to study music.

"They keep us all in business... these charity programs."

According to information released by the ministry, programs for low income and disabled people; those that provide food, shelter and support for people at risk; community health services; school nutrition programs; public safety programs; day cares and preschools; sports programs for youth and the disabled; community halls; recreation facilities; and non-sports youth groups will be the priority for grants.

Prince George Minor Football Association president Ryan Bellamy said his organization has received no information about the status of their grant application.

"We applied for our basic access grants to help get some gear replaced," Bellamy said. "Last year we didn't receive any. We were hoping to get it this year, because it's unusual to not get it two years in a row."

NDP arts and culture critic Spencer Herbert said the government hasn't been forthcoming about its plans for gaming grants.

"The government never announced they were reviewing the program or that there was a freeze," Herbert said. "The government froze the program without any consultation with the sector. Gaming revenue is hugely important to a number of groups. For a lot of organizations not in metro Vancouver, that is their lifeline."

The government recently increased the limit on online gaming to $10,000 per week from $120, he said. The increase in gaming revenues was supposed to be returned to the community, instead that money may end up in general revenue.

Herbert said that many groups have already begun to offer programing, based on written commitments from the government for that funding.

"The government has cut support for arts and culture by 50 per cent going into next year. HST, the arts council (cuts) and gaming are a perfect storm," he said. "It's very difficult to plan for next year with these proposed cuts."

The potential cut to gaming grants will accentuate the challenges created by the budget cuts to the B.C. Arts Council planned next year, Herbert said. Some organizations may go under because of lack of funding.

"How difficult is it to rebuild a symphony if you lose it?"