WATER

Why Arizona Needs Federal

Funding for Water Infrastructure
Fact Sheet • April 2009

O ur nation’s water infrastructure and economy are bound together. Aiding

the former will help the latter. Unfortunately, these days, both are treading
troubled waters.
In communities in Arizona and across the country, drink-
ing water and sewerage systems are straining under the
weight of decades of federal government underinvest-
ment. In recent years, the State Revolving Funds were
financed at some of the lowest levels in history. For fiscal
year 2008, Arizona received only $28 million, a mere 2.6
percent of the $1.1 billion that the state’s water and sewer
systems need.1

As the troubles with our water infrastructure mount, the

country’s economy slides deeper into recession. Arizona’s
January 2009 unemployment rate reached 7.0 percent, or
about 220,700 people, up from 4.4 percent a year earlier.
One in 14 people in the labor force are now unemployed.2

Investing now in water and sewer systems to gener-

ate solid economic growth can lead the state out of the
recession. Every federal dollar invested in infrastructure
yields a $1.59 return to our states.3 The National Utility
Contractors Association estimates that for every $1 bil-
lion spent on water infrastructure, nearly 27,000 jobs are
created.4

The economic stimulus legislation passed by Congress in

February 2009 provides more money to water infrastruc-
ture than the country has seen in recent years, but this
one-time allotment cannot cure the problems plaguing
many communities. In fact, the bill provides water and
sewer systems with less than one-third of what the Envi-
ronmental Protection Agency estimates we should spend
each year just to maintain them.
Arizona’s Water Infrastructure Funding Gap:
Arizona’s water needs outpace its current ability to fund
projects by a large margin.
received only $23.1 million in federal funding6 — enough
to finance 4 percent of its needs.
For the Clean Water State Revolving Fund program,
which goes toward wastewater infrastructure, the state’s
most recent Intended Use Plan lists 105 projects at a total
cost of $494 million.7 In 2008, the state received $4.5
million in federal funding8 — enough to finance less than
1 percent of its needs.

For the Drinking Water State Revolving Fund (SRF) pro- Federal contributions to Arizona’s wastewater funding
gram, the state’s most recent Intended Use Plan lists 187 efforts have decreased by 67.2 percent since the Clean
projects at a total cost of $572 million.5 In 2008, the state Water SRF was fully implemented in fiscal 1991 and 79.3
percent when adjusted for inflation.9
Job Creation: Fully addressing Arizona’s currently list-
ed water needs of $1.1 billion would spur 28,432 employ-
ment opportunities, according to National Utility Con-
tractors Association estimates for job creation from water
infrastructure investments. That could put back to work
one out of every eight unemployed people in the state.
Water Quality: According to EPA’s 2004 National
Water Quality Inventory assessments, 36 percent of
river miles and 14 percent of the state’s lake waters are
impaired, and all of its lakes are impaired for coldwater
fisheries.10
Legislative Solutions: A comprehensive, long-term
solution is a dedicated source of public funding for water
infrastructure. This would help communities in Arizona
and across America keep their water clean, safe and af-
fordable. It would unburden overtaxed state and mu-
nicipal governments of the cost of water infrastructure
repairs. Such an investment also would create employ-
ment opportunities and give our economy a much-needed
boost. Two legislative solutions exist.
Clean Water Trust Fund: A federal water infra-
structure trust fund bill will be introduced during
the current legislative session. As with the trust fund
for highways and airports, we should have a Clean
Water Trust Fund to provide municipalities with the
funding they need to keep our water safe and clean
for future generations. The trust fund should distrib-
ute money to publicly owned water and wastewater
systems. It also should ensure that funds be made
available for research and implementation of green
infrastructure and conservation practices.
National Infrastructure Bank: Related to the
trust fund is a proposed national infrastructure
bank to raise and distribute the money necessary
to upgrade drinking water and wastewater systems,
highways and other underpinnings of our nation’s
prosperity. Policy-makers should strictly limit private
sector involvement in water infrastructure to financ-
ing only. The public should maintain ownership and
control of public water and sewer utilities because it
does a far better job of management and operation.
Endnotes
1 U.S. Environmental Protection Agency, Office of Water.
“Tentative distribution of Drinking Water State Revolving
Fund appropriation for fiscal year 2008.” May 19, 2008; U.S.
Environmental Protection Agency, Office of Water. “FY 2008
Clean Water State Revolving Fund Title VI Allotments.” January
28, 2008; Arizona Water Infrastructure Finance Authority.
“Supplemental 2009 ARRA Intended Use Plan Arizona Drinking
Water State Revolving Fund.” 2009 at 14 – 25; Arizona Water
Infrastructure Finance Authority. “Supplemental 2009 ARRA
Intended Use Plan Arizona Clean Water State Revolving Fund.”
2009 at 14 – 21.
2 United States Department of Labor, Bureau of Labor Statistics.
[Press Release]. “Regional and state employment and
unemployment: January 2009.” March 11, 2009.
3 Schwartz, Bernard L. and Schwenninger, Sherle R. “A Public
Infrastructure–-Led Economic Recovery Program.” December
4, 2008; Zandi, Mark. Chief economist and co-founder, Moody’s
Economy.com. Testimony on Economic Stimulus For Small
Business: A Look Back and Assessing Need For Additional Relief.
U.S. House Committee on Small Business. July 24, 2008.
4 National Utility Contractors Association. [Press Release]. “New
CWC Report Demonstrates Immediate Economic Impact of
Water/Wastewater Infrastructure Investment?” January 28,
2009.
5 Arizona Water Infrastructure Finance Authority. “Supplemental
2009 ARRA Intended Use Plan Arizona Drinking Water State
Revolving Fund.” 2009 at 14 – 25.
6 U.S. Environmental Protection Agency, May 19, 2008.
7 Arizona Water Infrastructure Finance Authority. “Supplemental
2009 ARRA Intended Use Plan Arizona Clean Water State
Revolving Fund.” 2009 at 14 – 21.
8 U.S. Environmental Protection Agency, January 28, 2008.
9 Ibid; U.S. Environmental Protection Agency, Office of Water.
“Clean Water State Revolving Fund Allotments.” April 4, 2007;
Sahr, Robert C. “Inflation conversion factors for years 1774 to
estimated 2019.” Oregon State University, Political Science
Department. January 16, 2009.
10 , U.S. Environmental Protection Agency, Office of Water. National
Assessment Database. Available at www.epa.gov/waters/305b/,
accessed February 6, 2009.
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