BEACON HILL BEAT
JUNE 2005
SENATE APPROVES $24 BILLION FY 2006 STATE BUDGET POPOSAL
AND ALLOCATES $15 MILLION FOR THE COMMONWEALTH SEWER RATE
RELIEF FUND
In mid-May, the Senate Ways & Means Committee, Chaired
by Senator Therese Murray (D-Plymouth), released a $24 billion
state budget for FY 2006. The Senate budget is over $230 million
more than the House budget proposal and $700 million greater
than the Governor’s recommendation. It also represents
a 7% increase compared to last year’s budget.
The Senate concurred with both the Governor and House budget
recommendations to fund the Contract Assistance for the Clean
Water SRF program at $55,166,537, the Drinking Water SRF Contract
Assistance program at $9,465,260, and the Grandfathered Drinking
Water Contract Assistance at $7,852,853. The Senate increased
the funding for the DEP general account to $29,866,434. The
House has approved $28.37 million and the Governor’s
proposal was $28.27 million.
The Senate also increased the Commonwealth Sewer Rate Relief
Fund to $15 million compared to the House recommendation of
$12.5 million. The Governor failed to fund this program in
his House 1 budget recommendation. A large portion of this
fund is utilized by the MWRA, which on a daily basis treats
over 373 million gallons of sewage, and provides service to
over 2.5 million people, serves 870,000 households, and 5,500
businesses. Only a few years ago, the Rate Relief Program
was funded at $55 million. Due to the need to close the state
budget gaps, this program was reduced to $5 million in FY
2004, but increased to $10 million in the finalized 2005 budget.
UCANE encourages that the House-Senate Conference Committee
to fund this program at $15 million in the finalized FY 2006
state budget.
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UCANE ENCOURAGES MUNICIPALITIES TO APPLY FOR
COMMONWEALTH SEWER RATE RELIEF FUNDS
Over the past several months, UCANE has been discussing the
Commonwealth Sewer Rate Relief fund with legislators, Mayors,
and town officials. On several occasions, we were asked how
municipalities can apply for these funds which help alleviate
sewer rate increases. This program is administered by the
Division of Local Services in the Department of Revenue (DOR)
in consultation with the DEP. Traditionally, applications
for rate relief distribution are sent out by the DOR to municipalities
each August, with an application deadline in early September.
The Rate Relief program operates under the provisions of
Chapter 29, 2Z of the MA General Laws. The fund was created
in 1993 to mitigate escalating costs of sewer services in
the Commonwealth. Eligibility for debt service is defined
as:
- Permanent debt issued on or after January 1, 1990 for
a term greater than five years
- For water pollution control projects
- Projects which received state grants are ineligible
- Projects financed though the MA Water Pollution Abatement
Trust are generally ineligible
Further information can be found on the DOR’s Division
of Local Services web page at: http://www.dls.state.ma.us/publ/bull/2004/2004_12b.pdf
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~ Federal Level ~
UCANE MEMBERS MEET WITH CONGRESSMAN CAPUANO AND LOOKS TO
SENATE TO RESTORE $1.35 BILLION FOR THE CLEAN WATER SRF PROGRAM
At the end of May, the House Appropriations Subcommittee
on Interior, Environment and Related Agencies passed its FY
2006 spending measure, which included $850 million for the
Clean Water SRF program. Although the House budget increased
the funding for the SRF program above the $730 million proposed
by President Bush, it does not match last year’s appropriation
of $1.1 billion or the funding level for the previous years
of $1.35 billion. During the House budget negotiations, Congressman
David Obey (D-WI) offered two amendments to try and increase
SRF spending, both of which failed. A delegation of UCANE
members met with Congressman Michael Capuano (D-MA) to discuss
the funding shortfall. Congressman Capuano pledged support
for increased funding of the SRF program during the Conference
Committee.
UCANE and NUCA will look to the Senate to allocate appropriate
funding for the Clean Water SRF program. In early May, Senators
Edward Kennedy and John Kerry co-signed a letter with 49 other
Senators requesting that the Clean Water SRF program be funded
to at least the FY 2004 level of $1.35 billion. This bipartisan
letter has the support of the majority of the Senate, and
UCANE will work closely with NUCA to increase funding in the
finalized budget resolution. As the Senate letter points out,
besides having an important health and environmental impact,
the SRF program helps job creation and economic development.
A study conducted by the American Public Works Association
demonstrated that for every billion dollars invested in water
and sewer infrastructure construction, over 40,000 jobs are
created.
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NATIONAL SURVEY DEMONSTRATES PUBLIC SUPPORT FOR INCREASED
CLEAN WATER FUNDING
A survey conducted by The Luntz Companies, in conjunction
with Penn, Schoen & Berland Associates, shows that the
American people overwhelmingly support increased funding for
the nation’s clean water efforts. The national poll,
surveying 900 adults, found that 89% of the responders agreed
that, “federal investment to guarantee clean and safe
water is a critical component of our nation’s environmental
well-being.” The poll also found that 8 in 10 people
are concerned that the nation’s water will not be clean
or safe for future generations, and that they would support
federal funding to create a dedicated funding source to address
water issues. The survey also found that 78% of the responders
were more likely to vote for their member of Congress if the
legislator supported a water funding trust, and 63% of the
responders stated that they would likely vote against an individual
who did not support a water trust fund.
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EPA GIVE CHARLES RIVER CLEANUP EFFORTS THE
GRADE OF B+
EPA New England Administrator Bob Varney announced
that the Agency has given the Charles River cleanup efforts
the grade of B+ for 2004, a dramatic grade increase from the
D that the river was given in 1995. Last year the river was
safe for swimming 54% of the time and safe for boating 96%
of the time. In fact, the heaviest used area of the 80 mile
river (the portion of water between the Longfellow and Mass.
Avenue bridges) the river met state swimming standards throughout
the summer. In comparison, in 1995 the river was only suitable
for swimming 19% of the time and boating only 39% of the time.
While recognizing the success of the cleanup effort Varney
admitted that there was still a ways to go to ensure that
the river is safe and clean for recreational use. That’s
an incredible milestone for us, stated Varney, But at the
same time, we know that there are other parts of the Charles
that are not consistently fishable and swimmable.
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