For Immediate Release
October 30, 2008
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Senator Tomlinson Details Water/Sewer Funding Referendum

Would provide $400 million for essential infrastructure projects

Pennsylvania voters will consider a proposal to provide a much needed boost in state funding for vital infrastructure projects as part of the many important choices will face when they vote on November 4, according to State Senator Tommy Tomlinson (R-6).

In addition to casting ballots for a number of federal and state races, voters will be asked to vote "yes" or "no" on a long and detailed referendum question that reads as follows:

Water and Sewer Improvements Bond Referendum: Do you favor the incurring of indebtedness by the Commonwealth of $400,000,000 for grants and loans to municipalities and public utilities for the cost of all labor, materials, necessary operational machinery and equipment, lands, property, rights and easements, plans and specifications, surveys, estimates of costs and revenues, prefeasibility studies, engineering and legal services and all other expenses necessary or incident to the acquisition, construction, improvement, expansion, extension, repair or rehabilitation of all or part of drinking water system, storm water, nonpoint source projects, nutrient credits and wastewater treatment system projects?

"This is a very complex question, but in essence if this referendum passes it will provide an additional $400 million in Commonwealth funding that PENNVEST could use for additional grants and loans for water, wastewater and other water quality projects," according to Senator Tomlinson.  "The program and particularly municipal water and water sewer authorities need this additional funding. In recent years PENNVEST simply has not been able to fund all of the applications they have received, so this additional capacity is very much needed and that often means communities do not have the resources to undertake essential infrastructure improvement projects." 

Following a federal clean-water-needs study that determined that estimated $18 billion was needed to upgrade sewer and water systems throughout Pennsylvania over the next 10-15 years, the General Assembly approved Senate Bill 1341 authorizing a $400 million bond issue if approved by voter referendum. Governor Rendell signed the bill into law as Act 64 of 2008 on July 9.  

"In the long run, this will add anywhere from $35 million to $65 million in annual funding capacity for the PENNVEST program, depending upon how much of the initial $400 million PENNVEST is used for grants (Act 64 allows PENNVEST to use up to $200 million for grants) and how much is used for low-interest loans," Senator Tomlinson said.

Contact:

Fran Cleaver
(717) 787-5072