May 2016, Vol. 71 No. 5
Newsline
WEF, WateReuse Analysis Demonstrates SRF Benefits
The Water Environment Federation (WEF) and the WateReuse Association released a new economic benefits analysis on the impacts of increased funding for the Drinking Water and Clean Water State Revolving Funds (SRF), May 3, 2016. The analysis revealed a requested $34.7 billion of federal SRF spending will generate $102.7 billion in total economic input and create more than 500,000 jobs in the United States.
The Senate Environment and Public Works Committee requested an analysis be conducted by WEF and WateReuse for an April 2016 hearing examining the federal role in water/wastewater infrastructure funding. The preliminary findings were included in the organizations’ joint testimony and were verified and officially entered into the committee’s official record.
WEF and WateReuse examined the estimate impacts – output, labor income, jobs, and federal tax revenue – of SRF-funded projects in four example states using the IMPLAN economic model, which captures the effect of spending as it ripples through the economy.
The Senate Environment and Public Works Committee included a Sense of the Senate provision in S.2848, The Water Resources Development Act of 2016, which cited the findings of the analysis conducted by WEF and WateReuse, and called upon Congress to provide robust funding for the SRF programs. The bill passed April 28 and is currently awaiting full Senate consideration.The final report results – based on an assumption of the proposed $34.7 billion in allocations being spent over a 10-year period – include:
The final report results – based on an assumption of the proposed $34.7 billion in allocations being spent over a 10-year period – include:
- $34.7 billion in federal SRF spending results in $7.43 billion in federal tax revenues;
- When leveraged with the state SRF program funds, a $34.7 billion federal investment will result in $32.3 billion in federal tax revenue or $0.93 for every dollar spent;
- On average, 16.5 jobs are created for each million dollars of SRF funding, meaning a $34.7 billion federal investment would result in 506,000 new jobs; and
- Every million dollars of SRF spending would result in $2.95 million in U.S. economic input, meaning a $34.7 billion federal investment would generate $102.7 million in U.S. economic input.
According to WEF Executive Director Eileen O’Neill, SRFs are widely acknowledged as one of the most successful infrastructure funding programs, yet the resources needed to maintain and upgrade the systems remains out of sync with current investment levels.
“This report shows that water and wastewater infrastructure is a sound and wise economic investment that also provides immeasurable returns for public health, the environment, and our future,” O’Neill said.
WateReuse Association Executive Director Melissa Meeker said there’s little dispute that the infrastructure in the U.S. is in desperate need of repair, and she believes SRFs could help bolster a solution while improving ratepayers’ lives.
“With [the] release of this report, it’s also abundantly clear that SRFs both contribute to a high quality of life for taxpayers and foster a robust economy.”
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