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BEACON HILL BEAT
FEBRUARY 2006

GOVERNOR ROMNEY RELEASES $25.2 BILLION FY 2007 STATE BUDGET PROPOSAL BUT ALLOCATES "0" FOR THE COMMONWEALTH SEWER RATE RELIEF FUND

On January 25th, Governor Mitt Romney released his fourth and final state budget proposal totaling $25.2 billion for FY 2007. Six days prior to the budget release, in his State of the State Address, the Governor indicated that the budget would increase overall spending by 5.3% and focus his priorities on local aid by increasing city and town assistance by 17%, school aid by 7.3%, lower the state’s income tax to 5.15% next year with the goal of lowering it to 5% in two years, and work with the legislature to provide health insurance for the state’s uninsured.

Unfortunately, the Governor, for the fourth consecutive year, failed to allocate funds for the Commonwealth Sewer Rate Relief Fund. Established in 1993, the Commonwealth Sewer Rate Relief Fund was specifically designed to mitigate the escalating costs of sewer service in Massachusetts. Developed as communities received double-digit rate increases as a result of federally mandated improvement projects, the Rate Relief Fund has become one of the Commonwealth’s most overlooked tools for helping residents in over 100 communities throughout the state. Any city, town, and sewer district or authority is eligible to receive funds if it meets the appropriate debt criteria. In FY 2006, realizing the importance of this funding, the House and Senate agreed to allocate $12.5 million for Rate Relief and made a commitment to work to increase its funding in the years that follow. At its height, the Rate Relief Fund received over $60 million to defray the impact of debt obligations on eligible municipalities or sewer districts. UCANE has proposed that the House and Senate leadership to fund Rate Relief to, at a minimum of, $25 million in FY 2007.

As regards wastewater and drinking water funding in the state budget, both line-items for Contact Assistance for the State Revolving Loan Fund (SRF) remained stable. The Water Pollution Abatement Trust (WPAT) Clean Water Contract Assistance was funded at $54.9 million and the WPAT Drinking Water Contract Assistance was funded at $9.3 million. These line-items are to bond projects for the SRF program. The line-item that addresses grandfathered drinking water projects was once again funded at $7.86 million. This program was created to assist those communities who had the foresight to invest in their water infrastructure prior to the creation of the loan program. The legislature has committed to assisting with these water loans for a 10 year period, and FY 2007 marks the final year of that commitment. Additionally, the line item for Reimbursements for Tax Abatement to Elderly Water and Sewer Payers was funded at its traditional level of $9,655. UCANE encourages municipalities to educate their senior population about the availability of these reimbursements and encourage them to apply for these state funds.

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SENATE MINORITY LEADER LEES WILL NOT SEEK RE-ELECTION

Senate Minority Leader Brian Lees (R-East Longmeadow) announced that he would not seek re-election. “I have no immediate plans to take another job, and I am prepared to work hard on behalf of the people of this Senate district and Western Massachusetts until I leave the Senate.” In his statement, the Senator did not rule out running for office in the future, such as running for Congress or Mayor. “My intension is to fill out my term, but I will never shut the door to new opportunities that come down the road.” Lee was first elected to the state Senate in 1988 and has served as Minority Leader since 1993. Currently there are six Republicans in the 40 member Senate Chamber.

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BOSTON WATER & SEWER COMMISSION RELEASES
CAPITAL IMPROVEMENT PROGRAM

The Boston Water and Sewer Commission released their three year Capital Improvement Program (CIP) for 2006-2008. The overall objective of the Commission's CIP is to ensure the delivery of high quality potable water for consumption and fire protection and the efficient collection of sewage for transport and delivery to a treatment facility or for approved discharge. In addition, the CIP includes projects to improve the overall efficiency of the Commission and to enhance the Commission's ability to provide services to its customers. The projects included in this CIP are intended to accomplish these objectives in the most efficient and cost effective manner. In terms of physical improvements, the following major enhancements have been recently made:

• Completion of a new tide-gate and Cleaning of Davenport Brook
• Completion of Sewer Separation in the St. Botolph/Garrison Street Area
• Installation of a 72 inch drain in Shawmut Avenue
• Eliminated 204 sanitary sewer service connections
• Improvements to prevent upstream flooding during extreme storm events
• Disconnection of 13,000 downspouts since 1994
• Investigations to identify storm water entering sanitary sewers
• Installation of two new electric pumps at Union Park
• Updated Sewer Model

Boston Water & Sewer Commission’s Water Distribution System
The 2006-2008 CIP for the Water Distribution System continues programs for the relaying and relining of water mains, the replacement of older or defective hydrants as necessary on all relay and reline projects, the replacement of water mains on new or reconstructed bridges and various design services, permits and paving fees associated with the capital funded projects.

The largest component of the Water Distribution System CIP is the program to relay or reline water mains. The relaying program replaces aged, undersized or structurally deteriorated pipe. The relining program rehabilitates structurally sound pipe by cleaning out any interior residue and installing a cement lining. The quantity of work to be done each year is in accordance with the recommendations of the Water Distribution Study completed in 1987 as well as the specific needs of the Commission and its customers. This study recommends that the Commission undertake a combined total of up to 17 miles per year of relaying and relining projects through the year 2010. Adhering to this schedule will ensure that by 2010 all of the Commission's water mains will have been rehabilitated or replaced so that no pipe in the system is more than 100 years old. In each year after 2010, it was recommended the Commission will relay or reline approximately 10 miles, or one percent of the system, assuring a 100-year rehabilitation cycle.

The projects scheduled for 2006 will result in the relaying of 7.5 miles of water main and the cleaning and cement lining of 10.0 miles of water main. In addition in the streets scheduled for water main replacement; sewers and drains are inspected and if in poor condition are replaced or rehabilitated.

Boston Water & Sewer Commission’s Sewer System
Projects included in the Sewer System CIP include the annual repair or replacement of approximately 1.3 miles of deteriorated or collapsed sanitary sewers and storm drains along with the television inspection of 15 to 20 miles of sewer pipe each year.

In addition, the CIP continues funding for the separation of combined sewers and for the reduction of infiltration and inflow into the sanitary system. Reduction of Infiltration and Inflow (I/I) decreases the quantity of water transported to MWRA wastewater treatment facilities, thereby reducing overall transportation costs, treatment costs and BWSC sewer assessments.

Total capital expenditures of $79.2 million are outlined for 2006. Water Distribution projects comprise $41.4 million, or 52.3%. Sewer System projects account for $33.9 million or 42.8% and Support projects totaling $3.9 million consisting of the remaining 4.9% of the 2006 amount.

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~ Federal Level ~

PRESIDENT BUSH RELEASES $2.77 TRILLION
FEDERAL BUDGET PROPOSAL FOR FY 2007

On February 6th, President George Bush released his 2007 $2.77 trillion federal budget. The budget focuses on the President’s national priorities by increasing spending for national security and pushing to make his tax cuts permanent. To balance budget priorities, and to address the $423 billion deficit, the President cut many social, housing, education, and environmental programs. The EPA was cut by 4% to $7.3 billion and transportation was reduced by 9.4% to $13.2 billion.

Within the EPA’s budget is the federal funding for the SRF program. Traditionally, the funding level for the Clean Water SRF program had been $1.35 billion. Over the past three years this program was has been drastically cut, last year, for the first time in its existence the Clean Water SRF program was funded at under $1 billion. This year, in the Presidents sixth year in office, he continues this decline by proposing to fund the program at $688 million. Traditionally the President has funded this program at $850 million, only to have the House and Senate increase the funding in the finalized budget. Funding for the Drinking Water SRF program remained stable at $842 million. UCANE will work with the Massachusetts and New England Congressional delegation to increase the federal funding for the SRF program to appropriate levels.

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CONGRESSMAN BOEHNER ELECTED HOUSE MAJORITY LEADER

On February 2nd, the House of Representatives elected Congressman John Boehner (R-OH) as their Majority Leader succeeding Rep. Tom DeLay (R-TX). Boehner defeated acting Majority Leader Roy Blunt (R-GA) 122-109. Congressman Blunt will remain Majority Whip, the number 3 leadership position in the House.

Congressman Boehner was elected to represent Ohio’s Eighth Congressional District in 1990. During his tenure in the House, he has worked consistently to reform the federal government. His first two terms in the House were marked by an aggressive campaign to clean up Congress and make it more accountable to the American people. He was instrumental in crafting the Contract with America, the bold 100-day agenda for the 104th Congress that nationalized the 1994 elections.

Upon his election as Majority Leader Boehner stated, "I am humbled and honored by the confidence my Republican colleagues have expressed in me with today’s vote. This afternoon, House Republicans are united behind our Speaker, eager to renew our commitment to the principles that prompted Americans to put us in the majority. The work ahead of us will not be easy. We must act swiftly to restore the trust between Congress and the American people. We must take the necessary steps to get the federal budget under control - to cut wasteful spending, reform our entitlement programs, and craft a budget process that encourages fiscal discipline. And we must recommit ourselves to reducing the influence of government in our lives. United together, I’m confident that our party can tackle the challenges before us and continue to lead the House for years to come."

- Archived News -

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