In communities in Minnesota 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, Minnesota received only $27 million, a mere 1.3 percent of the $2.0 billion that the state’s water and sewer systems need.
Original Title
Why Minnesota Needs Federal Funding for Water Infrastructure
In communities in Minnesota 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, Minnesota received only $27 million, a mere 1.3 percent of the $2.0 billion that the state’s water and sewer systems need.
In communities in Minnesota 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, Minnesota received only $27 million, a mere 1.3 percent of the $2.0 billion 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 Minnesota 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, Minnesota received only $27 million, a mere 1.3 percent of the $2.0 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. Min- nesota’s January 2009 unemployment rate reached 7.6 percent, or about 222,000 people, up from 4.8 percent a year earlier. One in 13 people in the labor force are now unemployed.2
Investing now in water and sewer systems to generate sol-
id 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 Contrac- tors Association estimates that for every $1 billion 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 received only $14.7 million in federal funding6 — enough one-time allotment cannot cure the problems plaguing to finance 6.1 percent of its needs. many communities. In fact, the bill provides water and sewer systems with less than one-third of what the Envi- Federal contributions to Minnesota’s drinking water ronmental Protection Agency estimates we should spend funding efforts have decreased by 65.1 percent since the each year just to maintain them. Drinking Water SRF was implemented in fiscal 1997 and 74.0 percent when adjusted for inflation.7 Minnesota’s Water Infrastructure Funding Gap: Minnesota’s water needs outpace its current ability to For the Clean Water State Revolving Fund program, fund projects by a large margin. which goes toward wastewater infrastructure, the state’s most recent Intended Use Plan lists 260 projects at a total For the Drinking Water State Revolving Fund (SRF) pro- cost of $1.8 billion.8 In 2008, the state received $12.5 gram, the state’s most recent Intended Use Plan lists 145 million in federal funding9 — enough to finance 1/144th of projects at a total cost of $241 million.5 In 2008, the state its needs. Federal contributions to Minnesota’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 Minnesota’s currently
listed water needs of $2.0 billion would spur 54,431 employment opportunities, according to National Utility Contractors Association estimates for job creation from water infrastructure investments. That could put back to work nearly one-quarter of the unemployed people in the state.
Water Quality: According to EPA’s 2006 National
Water Quality Inventory assessments, 80 percent of river miles, 88 percent of the state’s lake waters and all of its Endnotes 1 U.S. Environmental Protection Agency, Office of Water. Great Lakes open waters are impaired.11 “Tentative distribution of Drinking Water State Revolving Fund appropriation for fiscal year 2008.” May 19, 2008; U.S. Beach Closings: A report by the Natural Resources Environmental Protection Agency, Office of Water. “FY 2008 Clean Water State Revolving Fund Title VI Allotments.” January Defense Council shows that Minnesota 28, 2008; Minnesota Public Facilities Authority. “Drinking Water experienced 195 beach advisory days lasting six weeks Revolving Fund 2009 Intended Use Plan.” August 28, 2008 at 1; or fewer in 2007, a 167 percent increase from the number Minnesota Public Facilities Authority. “Clean Water Revolving Fund 2009 Intended Use Plan.” August 28, 2008 at 2. in 2006. Aging and poorly designed sewage and stormwa- 2 United States Department of Labor, Bureau of Labor Statistics. ter systems cause many beach closures.12 [Press Release]. “Regional and state employment and unemployment: January 2009.” March 11, 2009. 3 Schwartz, Bernard L. and Schwenninger, Sherle R. “A Public Legislative Solutions: A comprehensive, long-term Infrastructure–-Led Economic Recovery Program.” December solution is a dedicated source of public funding for water 4, 2008; Zandi, Mark. Chief economist and co-founder, Moody’s infrastructure. This would help communities in Min- Economy.com. Testimony on Economic Stimulus For Small Business: A Look Back and Assessing Need For Additional Relief. nesota and across America keep their water clean, safe U.S. House Committee on Small Business. July 24, 2008. and affordable. It would unburden overtaxed state and 4 National Utility Contractors Association. [Press Release]. “New municipal governments of the cost of water infrastructure CWC Report Demonstrates Immediate Economic Impact of Water/Wastewater Infrastructure Investment?” January 28, repairs. Such an investment also would create employ- 2009. ment opportunities and give our economy a much-needed 5 Minnesota Public Facilities Authority. “Drinking Water Revolving boost. Two legislative solutions exist. Fund 2009 Intended Use Plan.” 2008 at 1. 6 U.S. Environmental Protection Agency, May 19, 2008. 7 Ibid; U.S. Environmental Protection Agency, Office of Water. Clean Water Trust Fund: A federal water infra- “Distribution of DWSRF funds.” June 23, 2006; Sahr, Robert C. structure trust fund bill will be introduced during “Inflation conversion factors for years 1774 to estimated 2019.” Oregon State University, Political Science Department. January the current legislative session. As with the trust fund 16, 2009. for highways and airports, we should have a Clean 8 Minnesota Public Facilities Authority. “Clean Water Revolving Water Trust Fund to provide municipalities with the Fund 2009 Intended Use Plan.” 2008 at 2. 9 U.S. Environmental Protection Agency, January 28, 2008. funding they need to keep our water safe and clean 10 Ibid; U.S. Environmental Protection Agency, Office of Water. for future generations. The trust fund should distrib- “Clean Water State Revolving Fund Allotments.” April 4, 2007; ute money to publicly owned water and wastewater Sahr, 2009. 11 , U.S. Environmental Protection Agency, Office of Water. National systems. It also should ensure that funds be made Assessment Database. Available at www.epa.gov/waters/305b/, available for research and implementation of green accessed February 6, 2009. infrastructure and conservation practices. 12 Dorfman, Mark and Kristen Sinclair Rosselot. National Resources Defense Council “Testing the Waters 2008: A Guide to Water Quality at Vacation Beaches.” National Resources Defense National Infrastructure Bank: Related to the Council. 2008 at 76. 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- For more information: ing only. The public should maintain ownership and web: www.foodandwaterwatch.org control of public water and sewer utilities because it email: info@fwwatch.org does a far better job of management and operation. phone: (202) 683-2500 (DC) • (415) 293-9900 (CA)