The worsening economy is zapping state funds for environmental projects, the past beneficiaries of which include a handful of region schools.

The Indiana Department of Environmental Management is suspending its program that financially backs local business and government pollution prevention efforts.

Citing state budget reductions, IDEM is postponing its grant and loan program for the next 18 to 30 months, saving the agency an estimated $2 million per year, spokeswoman Amy Hartsock said.

The move cuts funds -- which recipients are required to match -- to programs that, among other things, help purchase recycling bins, treat hazardous waste and make products from used tires.

IDEM's pending grants or loans not assured by Dec. 19 will be delayed, including for projects in Hammond and Hobart. Recycling grants for both cities -- $35,100 for Hammond, $19,709 for Hobart -- were awarded in the fall but now are on hold.

Among the Lake and Porter County recipients in the last few years are health departments, environmental groups and six school districts.

Hartsock said IDEM will honor all other 2008 grants, including $8,000 awarded late in the year to Lake Central School Corp.

Lake Central received nearly $74,300 in 2008, about $14,000 of which was set for a walking path to be built at Bibich Elementary School this coming spring.

But IDEM's move throws into flux other grants Lake Central likely may have sought to renew in the future, including a $7,500 stipend for recycling bins at the high school.

"There are a few grants I'm concerned about," said Lake Central Finance Director Tom Dykiel, who said the district had planned to comb for state money to help fund renovation at the high school. "I guess that's going to really put us in a bind."

Agencies and businesses in Lake County were awarded $1.2 million in assistance in 2008, while Porter County groups received $54,545. Some recipients had sought awards every year since 2005.