In communities in Missouri and across the country, drinking water and sewerage systems are straining under the weight of decades of federal government underinvestment. In recent years, the State Revolving Funds were financed at some of the lowest levels in history. For fiscal year 2008, Missouri received only $35 million, a mere 4.2 percent of the $827 million that the state’s water and sewer systems need.
Original Title
Why Missouri Needs Federal Funding for Water Infrastructure
In communities in Missouri and across the country, drinking water and sewerage systems are straining under the weight of decades of federal government underinvestment. In recent years, the State Revolving Funds were financed at some of the lowest levels in history. For fiscal year 2008, Missouri received only $35 million, a mere 4.2 percent of the $827 million that the state’s water and sewer systems need.
In communities in Missouri and across the country, drinking water and sewerage systems are straining under the weight of decades of federal government underinvestment. In recent years, the State Revolving Funds were financed at some of the lowest levels in history. For fiscal year 2008, Missouri received only $35 million, a mere 4.2 percent of the $827 million that the state’s water and sewer systems need.
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 Missouri and across the country,
drinking 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, Missouri received only $35 million, a mere 4.2 percent of the $827 million 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. Mis- souri’s January 2009 unemployment rate reached 8.0 percent, or about 241,300 people, up from 5.5 percent a year earlier. Nearly one in 12 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 projects at a total cost of at least $148 million.5 In 2008, one-time allotment cannot cure the problems plaguing the state received only $15.8 million in federal funding6 many communities. In fact, the bill provides water and — enough to finance 11 percent of its needs. sewer systems with less than one-third of what the Envi- ronmental Protection Agency estimates we should spend Federal contributions to Missouri’s drinking water each year just to maintain them. funding efforts have decreased by 27.6 percent since the Drinking Water SRF was implemented in fiscal 1997 and Missouri’s Water Infrastructure Funding Gap: 46.1 percent when adjusted for inflation.7 Missouri’s water needs outpace its current ability to fund projects by a large margin. For the Clean Water State Revolving Fund program, which goes toward wastewater infrastructure, the state’s For the Drinking Water State Revolving Fund (SRF) pro- most recent Intended Use Plan lists 68 projects at a total gram, the state’s most recent Intended Use Plan lists 48 cost of $680 million.8 In 2008, the state received $18.9 million in federal funding9 — enough to finance 1/36th of its needs.
Federal contributions to Missouri’s wastewater funding
efforts have decreased by 66.8 percent since the Clean Water SRF was fully implemented in fiscal 1991 and 79.0 percent when adjusted for inflation.10
Job Creation: Fully addressing Missouri’s currently
listed water needs of $827 million would spur 22,066 employment opportunities, according to National Utility Contractors Association estimates for job creation from to upgrade drinking water and wastewater systems, water infrastructure investments. That could put back to highways and other underpinnings of our nation’s work nearly one-tenth of the state’s unemployed people. prosperity. Policy-makers should strictly limit private sector involvement in water infrastructure to financ- Water Quality: According to EPA’s 2006 National ing only. The public should maintain ownership and Water Quality Inventory assessments, 53 percent of river control of public water and sewer utilities because it miles and 23 percent of the state’s lake waters are im- does a far better job of management and operation. paired.11 Endnotes 1 U.S. Environmental Protection Agency, Office of Water. Legislative Solutions: A comprehensive, long-term “Tentative distribution of Drinking Water State Revolving solution is a dedicated source of public funding for water Fund appropriation for fiscal year 2008.” May 19, 2008; U.S. infrastructure. This would help communities in Mis- Environmental Protection Agency, Office of Water. “FY 2008 Clean Water State Revolving Fund Title VI Allotments.” January souri and across America keep their water clean, safe 28, 2008; Missouri Department of Natural Resources, Water and affordable. It would unburden overtaxed state and Protection Program. “Missouri’s Comprehensive List and municipal governments of the cost of water infrastructure Fundable Project Lists for Drinking Water State Revolving Fund Leveraged Loans for State Fiscal Year 2009.” August 26, 2008; repairs. Such an investment also would create employ- Missouri Department of Natural Resources, Water Protection ment opportunities and give our economy a much-needed Program. “Missouri State Fiscal Year 2010 Clean Water State boost. Two legislative solutions exist. Revolving Fund Intended Use Plan, State Grant and Loan Priority List and Program Application Forms & Instructions.” March 4, Clean Water Trust Fund: A federal water infra- 2009 at 25-32. 2 United States Department of Labor, Bureau of Labor Statistics. structure trust fund bill will be introduced during [Press Release]. “Regional and state employment and the current legislative session. As with the trust fund unemployment: January 2009.” March 11, 2009. for highways and airports, we should have a Clean 3 Schwartz, Bernard L. and Schwenninger, Sherle R. “A Public Infrastructure–-Led Economic Recovery Program.” December Water Trust Fund to provide municipalities with the 4, 2008; Zandi, Mark. Chief economist and co-founder, Moody’s funding they need to keep our water safe and clean Economy.com. Testimony on Economic Stimulus For Small for future generations. The trust fund should distrib- Business: A Look Back and Assessing Need For Additional Relief. U.S. House Committee on Small Business. July 24, 2008. ute money to publicly owned water and wastewater 4 National Utility Contractors Association. [Press Release]. “New systems. It also should ensure that funds be made CWC Report Demonstrates Immediate Economic Impact of available for research and implementation of green Water/Wastewater Infrastructure Investment?” January 28, 2009. infrastructure and conservation practices. 5 Missouri Department of Natural Resources, August 26, 2008. 6 U.S. Environmental Protection Agency, May 19, 2008. National Infrastructure Bank: Related to the 7 Ibid; U.S. Environmental Protection Agency, Office of Water. “Distribution of DWSRF funds.” June 23, 2006; Sahr, Robert C. trust fund is a proposed national infrastructure “Inflation conversion factors for years 1774 to estimated 2019.” bank to raise and distribute the money necessary Oregon State University, Political Science Department. January 16, 2009. 8 Missouri Department of Natural Resources, March 4, 2009 at 25-32. 9 U.S. Environmental Protection Agency, January 28, 2008. 10 Ibid; U.S. Environmental Protection Agency, Office of Water. “Clean Water State Revolving Fund Allotments.” April 4, 2007; Sahr, 2009. 11 U.S. Environmental Protection Agency, Office of Water. National Assessment Database. Available at www.epa.gov/waters/305b/, accessed February 6, 2009.