CBRE

Business News

Feb 15
Governor Rendell Says Federal Infrastructure Cuts Limit PA's Ability to Maintain Water Systems By Betsy Kraat

HARRISBURG--Governor Edward G. Rendell today said the federal government has reduced financial support for an important water quality improvement program by nearly half-a-billion dollars over the past three years, with additional cuts proposed in President Bush's fiscal year 2009 budget.

These cuts, noted the Governor, are making it more difficult to keep pace with the needs of Pennsylvania's aging infrastructure, and they are putting a greater burden on states and local municipalities.

In order to address this funding shortfall, the Governor today signaled his intent to sign an executive order that will focus on finding solutions to Pennsylvania's drinking water and wastewater system needs, including new funding options and non-structural alternatives to capital upgrades, such
as nutrient credit trading, water re-use and conservation.

The executive order will establish the Sustainable Water Infrastructure Task Force, which is to develop a report by Oct. 1, 2008, that analyzes issues related to cost-effective and sustainable investment in the state's water and sewer infrastructure. The report also is to provide recommendations and financing options to support water-related services in the Governor's fiscal year 2009-10 budget proposal.

The task force will be comprised of representatives of the administration, General Assembly, academia, the state's Office of Consumer Advocate, as well as local government and municipal associations.

As part of his fiscal year 2008-09 proposed budget, Governor Rendell launched the Rebuild Pennsylvania initiative. The plan calls for accelerating $200 million for bridge repairs, $13 million for flood control projects, $12 million for repairs to state-owned dams, $10 million for new rail freight projects and $5 million for aviation projects in FY 08-09. It also includes $22 million in new General Fund investments for local dam repairs, flood plain mapping and infrastructure for business development.

Commonwealth of Pennsylvania
www.pa.gov

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