CLEAN WATER SRF TAKES ANOTHER HIT IN PRESIDENT'S BUDGET
AGC is dismayed by the Bush administration’s Fiscal Year 2007 (FY 07) proposal to again dramatically cut the U.S. Environmental Protection Agency’s (EPA) budget.

Much of this reduction would be achieved by reducing the Agency’s already under-funded Clean Water State Revolving Fund (SRF) program to $688 million.  The Clean Water SRF, a low-interest loan program designed to help local communities repair and replace aging treatment systems, has been the primary source of federal dollars for clean water projects since 1987. Our nation is now facing an estimated $23 billion shortfall per year (combined water and wastewater needs) over the next twenty years in the amount of money that needs to be spent on our local treatment, distribution and collection systems.

The Clean Water State Revolving Fund (SRF) received at least $1.35 billion annually in federal appropriations from 1996 until 2004. Actual spending figures for FY 2005 were $1.091 billion.  Estimates for FY 2006 are only $887 million. The President’s budget proposes a significant reduction in capitalization grants for the program, while providing level funding for the Drinking Water SRF program.  Specifically, the budget recommends $688 million for the Clean Water SRF program; a $199 million or 22 percent decrease from FY 2006.  The budget proposes essentially level funding of $842 million for the Drinking Water SRF. States and municipalities are not equipped to make up this shortfall in federal support. 

AGC is committed to working with Congress to ensure water and wastewater infrastructure funding is a priority to foster a national dialogue that will help to create solutions for our nation’s water and wastewater systems.  We are urging Congress to support H.R. 4560, the Clean Water Trust Act which would create a dedicated fund for clean water infrastructure as well as S. 1400, the Water Infrastructure Financing Act which would fund the SRF programs at $38 billion over five years. 

AGC members are urged to contact Congress to add their support to these measures.  Visit AGC partner, Clean Water America at www.cleanwateramerica.org to sign an online petition and to contact your Members of Congress.  AGC members should also contact their Members of Congress by logging on to the AGC Legislative Action Center at http://www.bipac.net/issue_alert.asp?g=AGC&issue=Waste_Water&parent=AGC 

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