In communities in New Mexico 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, New Mexico received only $11 million, a mere 2.5 percent of the $463 million that the state’s water and sewer systems need.
Original Title
Why New Mexico Needs Federal Funding for Water Infrastructure
In communities in New Mexico 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, New Mexico received only $11 million, a mere 2.5 percent of the $463 million that the state’s water and sewer systems need.
In communities in New Mexico 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, New Mexico received only $11 million, a mere 2.5 percent of the $463 million 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 New Mexico 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, New Mexico received only $11 million, a mere 2.5 percent of the $463 million 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. New Mexico’s January 2009 unemployment rate reached 5.1 percent, or about 49,000 people, up from 3.7 percent a year earlier. One in 20 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 the state received only $8.1 million in federal funding6 — one-time allotment cannot cure the problems plaguing enough to finance less than half 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 New Mexico’s drinking water ronmental Protection Agency estimates we should spend funding efforts have decreased by 36.2 percent since the each year just to maintain them. Drinking Water SRF was implemented in fiscal 1997 and 52.4 percent when adjusted for inflation.7 New Mexico’s Water Infrastructure Funding Gap: New Mexico’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 58 projects at a total For the Drinking Water State Revolving Fund (SRF) pro- cost of $443 million.8 In 2008, the state received $3.3 gram, the state’s most recent Intended Use Plan lists 16 million in federal funding9 — enough to finance 1/135th of projects at a total cost of at least $19.7 million.5 In 2008, its needs. Federal contributions to New Mexico’s wastewater fund- ing efforts have decreased by 67.5 percent since the Clean Water SRF was fully implemented in fiscal 1991 and 79.4 percent when adjusted for inflation.10
Job Creation: Fully addressing New Mexico’s currently
listed water needs of $463 million would spur 12,335 employment opportunities, according to National Utility Contractors Association estimates for job creation from water infrastructure investments. That could put back to work a quarter of the state’s unemployed people.
Water Quality: According to EPA’s 2006 National
Water Quality Inventory assessments, 47 percent of river miles and 69 percent of the state’s lake waters are im- highways and other underpinnings of our nation’s paired, and 95 percent of its lakes do not support cold prosperity. Policy-makers should strictly limit private and warm water fisheries.11 sector involvement in water infrastructure to financ- ing only. The public should maintain ownership and Legislative Solutions: A comprehensive, long-term control of public water and sewer utilities because it solution is a dedicated source of public funding for water does a far better job of management and operation. infrastructure. This would help communities in New Mexico and across America keep their water clean, safe Endnotes and affordable. It would unburden overtaxed state and 1 U.S. Environmental Protection Agency, Office of Water. municipal governments of the cost of water infrastructure “Tentative distribution of Drinking Water State Revolving repairs. Such an investment also would create employ- Fund appropriation for fiscal year 2008.” May 19, 2008; U.S. Environmental Protection Agency, Office of Water. “FY 2008 ment opportunities and give our economy a much-needed Clean Water State Revolving Fund Title VI Allotments.” January boost. Two legislative solutions exist. 28, 2008; New Mexico Finance Authority. “State of New Mexico Drinking Water State Revolving Fund SFY2009 Intended Use Plan.” 2009 at D-2, D-3; New Mexico Environment Department, Clean Water Trust Fund: A federal water infra- Administrative Services Division. “New Mexico Clean Water State structure trust fund bill will be introduced during Revolving Fund (CWSRF) Intended Use Plan Fiscal Year 2009.” the current legislative session. As with the trust fund June 20, 2008 at Table 1. 2 United States Department of Labor, Bureau of Labor Statistics. for highways and airports, we should have a Clean [Press Release]. “Regional and state employment and Water Trust Fund to provide municipalities with the unemployment: January 2009.” March 11, 2009. funding they need to keep our water safe and clean 3 Schwartz, Bernard L. and Schwenninger, Sherle R. “A Public Infrastructure–-Led Economic Recovery Program.” December for future generations. The trust fund should distrib- 4, 2008; Zandi, Mark. Chief economist and co-founder, Moody’s ute money to publicly owned water and wastewater Economy.com. Testimony on Economic Stimulus For Small systems. It also should ensure that funds be made Business: A Look Back and Assessing Need For Additional Relief. U.S. House Committee on Small Business. July 24, 2008. available for research and implementation of green 4 National Utility Contractors Association. [Press Release]. “New infrastructure and conservation practices. CWC Report Demonstrates Immediate Economic Impact of Water/Wastewater Infrastructure Investment?” January 28, 2009. National Infrastructure Bank: Related to the 5 New Mexico Finance Authority. 2009 at D-2, D-3. trust fund is a proposed national infrastructure 6 U.S. Environmental Protection Agency, May 19, 2008. bank to raise and distribute the money necessary 7 Ibid; U.S. Environmental Protection Agency, Office of Water. “Distribution of DWSRF funds.” June 23, 2006; Sahr, Robert C. to upgrade drinking water and wastewater systems, “Inflation conversion factors for years 1774 to estimated 2019.” Oregon State University, Political Science Department. January 16, 2009. 8 New Mexico Environment Department, June 20, 2008 at Table 1. 9 U.S. Environmental Protection Agency, January 28, 2008. 10 Ibid; U.S. Environmental Protection Agency, Office of Water. “Clean Water State Revolving Fund Allotments.” April 4, 2007; Sahr, 2009. 11 U.S. Environmental Protection Agency, Office of Water. National Assessment Database. Available at www.epa.gov/waters/305b/, accessed February 6, 2009.