The secretary of state shall establish a competitive local government grant program to solicit and prioritize project proposals from county election offices. Potential projects [project] proposals must be new projects designed to help the county election office comply with the requirements of the Help America Vote Act (P.L. 107-252). Grant funds will not be allocated to fund existing statutory functions of local elections [election] offices, and in order to be eligible for a grant, local election offices must maintain an elections budget at or above the local elections budget by July 1, 2004.