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BEACON HILL BEAT
FEBRUARY 2005

GOVERNOR ROMNEY RELEASES HIS HOUSE 1
FY 2006 STATE BUDGET PROPOSAL

In late January, Governor Mitt Romney released House 1, his $23.3 billion FY 2006 state budget proposal. He proposed a 2.4% overall increase in spending over last year. When outside sections of the budget are included, the total funding proposed is $25.5 billion compared to last year's $24.7 billion. Of importance to UCANE members, contract assistance for the State Revolving Loan Funds (SRF) remained even. The Clean Water SRF Contract Assistance received $55 million and the Drinking Water SRF Contract Assistance received over $9 million. The Grandfathered Drinking Water Contract Assistance, which is a budget line-item installed to reward communities who addressed drinking water concerns by building water treatment plants prior to the development of the SRF program (and were under no obligation to do so by environmental regulatory agencies), was funded at $7.5 million. The legislature has committed to fund this program for 10 years, this being the eighth.

UCANE was disappointed that, for the fourth year in a row, the Governor failed to include the Commonwealth Water and Sewer Rate Relief Fund in his budget proposal. This important line-item helps offset water and sewer rates for the residents of the Commonwealth of Massachusetts. Appropriately treating and disposing wastewater is of critical importance, not only for the health of the citizens of the Commonwealth, but also to preserve the environment. Only a few years ago, this program was funded at $55 million. Due to the need to close state budget gaps, this program was reduced to $10 million in the finalized Fiscal Year 2005 state budget. UCANE will look to the legislature to once again include this important program in their respective FY 2006 budget proposals.

HOUSE & SENATE APPOINT LEADERSHIP
POSITIONS AND COMMITTEE CHAIRS

House Speaker Sal DiMasi (D-Boston) and Senate President Robert Travalgini (D-Boston) announced their leadership positions along with the Chairs of the House and Senate Leadershipfor the two-year legislative terms.

Standing Committees Senate House_______________
Chair Ways and Means Therese Murray (D-Plymouth) Robert DeLeo (D-Winthrop)
Vice Chair Ways and Means Steven C. Panagiotakos (D-Lowell) Marie St. Fleur (D-Boston)
Asst. Vice Chair Ways and Means Steven A. Tolman (D-Brighton) James Vallee (D-Franklin)

Bills in Third Reading Stephen M. Brewer (D-Barre) Thomas Golden (D-Lowell)

Post Audit and Oversight Marc R. Pacheco (D-Taunton) Geoffrey Hall (D-Westford)

Ethics and Rules Charles E. Shannon (D-Wincester) Author Broadhurst (D-Methuen)

Joint Committees Senate_______________________ House__________________

Bonding, Capital Mark C. Montigny (D-New Bedord) David Flynn (D-Bridgewater)
Expenditures and State Assets

Children and Families Karen E. Spilka (D-Ashland) Shirley Owens-Hicks (D-Boston)

Community Development Harriette L. Chandler (D-Worcester) David Torrisi D-North Adams)
and Small Business

Consumer Protection Michael W. Morrissey (D-Quincy) Vincent Pedone (D-Worcester)
and Professional Licensure

Economic Development Jack A. Hart, Jr. (D-Boston) Daniel Bosley (D-North Adams)
and Emerging Technology

Education Robert A. Antonioni (D-Leominster) Patricia Haddad (D-Somerset)

Elder Affairs Susan C. Tucker (D-Andover) Robert Correia (D-Fall River)

Election Laws Edward M. Augustus (D-Worcester) Anthony Petruccelli (D-Boston)

Environment, Pamela P. Resor (D-Acton) Frank Smizik (D-Brookline)
Natural Resources and Agriculture

Financial Services Andrea F. Nuciforo (D-Pittsfield) Ronald Mariano (D-Quincy)

Health Care Financing Richard T. Moore (D-Uxbridge) Patricia Walrath (D-Stow)

Higher Education Robert O'Leary (D-Barnstable) Kevin Murphy (D-Lowell)

Housing Brian A. Joyce (D-Milton) Kevin Honan (D-Boston)

Judiciary Robert S. Creedon, Jr. (D-Brockton) Eugene O'Flaherty (D-Chelsea)

Labor and Thomas M. McGee (D-Lynn) Michael Rodrigues (D-Westport)
Workforce Development

Mental Health Steven A. Tolman (D-Brighton) Ruth Balser (D-Newton)
and Substance Abuse

Municipalities James E. Timilty (D-Walpole) Rachel Kaprielian (D-Watertown)
and Regional Government

Public Health Susan C. Fargo (D-Lincoln) Peter Koutoujian (D-Waltham)

Public Safety Jarrett T. Barrios (D-Cambridge) Cheryl Rivera (D-Springfield)
and Homeland Security

Public Service Stephen J. Buoniconti (D-West Springfield) Jay Kaufman (D-Lexington)

State Administration Dianne Wilkerson (D-Boston) Antonio Cabral (D New Bedford)
and Regulatory Oversight

Revenue Cynthia Stone Creem (D-Newton) John Binienda (D-Worcester)

Telecommunications, Michael W. Morrissey (D-Quincy) Brian Dempsey (D-Haverhill)
Utilities and Energy

Tourism, Jack A. Hart, Jr. (D-Boston) Erik Turkington (D-Falmouth)
Arts and Cultural Development

Transportation Steven A. Baddour (D-Methuen) Joseph Wagner (D-Chicopee)

Veterans and Federal Affairs Stephen M. Brewer (D-Barre) Anthony Verga (D-Gloucester)

~ On the Federal Level ~

UCANE MEETS WITH CONGRESSMAN LYNCH
TO DISCUSS FEDERAL SRF FUNDING

In late January, a delegation of UCANE members met with Congressman Stephen Lynch to discuss the cut of Clean Water State Revolving Loan Funds (SRF) on the federal level. In the last days of December, Congress passed a massive omnibus bill to fund the remaining nine out of thirteen spending measures to fund the federal government. The omnibus bill included a $250 million cut to the EPA's Clean Water SRF, which is funded through the Committee on Veterans Affairs (VA), Housing and Urban Development (HUD), and Independent Agencies. Traditionally the Clean Water SRF program is funded at $1.35 billion.

The cut in the federal Clean Water SRF program further burdens the already insufficient funds to address the enormous backlog of projects throughout Massachusetts, New England, and the country. This reduction would have drastic consequences on water quality, public health, and would undermine the efforts of state and local communities to address their water infrastructure needs. It also would have a negative effect on economic conditions by the loss of an estimated 23,750 skilled construction jobs. UCANE will continue to work with Congressman Lynch and the rest of the Massachusetts and New England Congressional delegation to support full funding of the SRF program on the federal level.

PRESIDENT BUSH CUTS FEDERAL SRF PROGRAM
IN HIS PROPOSED FY 2006 FEDERAL BUDGET

On February 7th, President Bush released his $2.6 trillion FY 2006 federal budget. The budget represents a cut in environmental and social programs and increases spending on national defense. President Bush stated, "It's a budget that set priorities. Our priorities are winning the war on terror, protecting our homeland, and growing our economy. It's a budget that focuses on results. Taxpayers in America don't want us spending their money on something that's not achieving results."

Once again the Clean Water SRF program was reduced in the budget proposal. As UCANE and NUCA, our national affiliate in Washington, fight to address the country's water infrastructure needs, the White House further reduced the Clean Water SRF program funding it at $730 million. Over the past two Presidential Administrations, Clinton and Bush each allocated $850 million in their budget proposals for the Clean Water SRF program, knowing that Congress would approve the additional funds needed to address the nation's wastewater infrastructure. The reduction in last year's finalized federal budget of $1.1 billion, combined with the President's proposed reduction, indicates that an increased effort is needed to educate Congress and the White House on the tremendous need to fund water infrastructure projects. As indicated by the Environmental Protection Agency's (EPA) 2002 Clean Water and Drinking Water Infrastructure Gap Analysis, there will be a $534 billion gap between funding and projected needs for water and wastewater infrastructure if the federal investment in the SRF program is not increased. A copy of the federal report can be found on the Internet at:
http://www.epa.gov/safewater/gapreport.pdf

USEPA's budget briefing was held this afternoon and the news is not good for the water program, especially the SRF and the 104(b) accounts.
Our traditional funding chart is being developed and will be sent out shortly. In the meantime, here are the highlights of the FY 2006 levels requested by the President:
SRF ++$730 million requested as compared to
$850 million requested by President and $1.1billion appropriated in FY 05.
319 ++$209 million requested for State nonpoint source management programs under Section 319. Same as requested and appropriated in FY2005.
106 ++$231.9 million requested for State and Interstate water quality management programs. $222.4 million requested and $210 million appropriated in FY05.
104(b) no funding was requested for 104(b) Water Quality Cooperative Agreements in FY06. $20.5 million requested in FY05.
No funding was requested for Wastewater Operator Training Grants. $1.5 million requested in FY 05. More to come shortly.

~ Archived News ~

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