PUCA Works to Secure Clean Water Funding
October 25, 2007 - State College. The Sewage Task Force met to hear from speaker Ty Gourley of the Southwest Regional Water Management Task Force study and poll results. The group later discussed the Pennsylvania Municipal Authories Association's (PMAA) proposed tax on toilet paper. The PMAA extimated the amount of revenue generated from a $.06 sales tax to be $37million annually. This amount would pay the interest and debt on a $400 million bond for 20 years. Bruce Hottle, PUCA Treasurer outlined the Maryland Flush Tax and explained this proposal would generate more revenue that would better address the aging infrastructure. The legislators and the majority of the group felt that considering the legislative atmosphere a small piece of the pie was better than nothing. Brenda Reigle, PUCA Executive Director, noted that should this proposal pass, some of the revenue needed to be spent on continued public PR of the gravity of the sewer and water infrastructure. This would be necessary for future legislative action coming from the constituency rather than stakeholders.
Bruce Hottle noted that Legislators will take a public media "hit" for the sales tax, they might as well take it for enough funds to show the public system improvements. Brenda Reigle suggested the Legislature consider eliminating the municipal sales tax on certain components used to construct sewer and water infrastructure projects. Many attendees were surprised that sales tax is being applied. Brenda suggested the municipalites or authorities keep the sale tax amount and use it for capital improvements. She also noted the administrative fees for everyone concerned would reduce costs. The Legislature is expected to consider sales tax legislation in the upcoming session.
JUNE 21, 2007 - State College. On June 21, Bruce Hottle, PUCA Treasurer (President of Eagle Concrete Products) and Brenda Reigle, PUCA Executive Director, attended a special sewage task force meeting in State College. The group was formed by the Joint Legislative Air and Water Pollution Control and Conservation Committee (JCC) to resolve issues with DEP permitting, guidelines or regulations that affect the construction industry, engineers and government entities. The group of stakeholders soon realized that funding is the main issue that needs to be addressed. The group reviewed PUCA’s proposed Clean Water Trust Fund legislation that PUCA drafted several years ago and put forth before the Legislature for consideration. While several comments of opposition were noted at the meeting, Bruce presented the economic reasoning and projected the funding needs for Pennsylvania to grow. Brenda highlighted the history of the bill and that the proposed legislation is simply a starting point to open dialogue on the issue. One alternative funding concept was presented by the PA Municipal Authorities Association (PMAA). PMAA suggested a five cent tax on the sale of toilet paper. The Director of the JCC asked for more information on the amount of revenues such a tax could generate for Clean Water by the next meeting this fall. PUCA is working on some suggested changes to our proposal before the next meeting. If any PUCA members have an idea on how to fund Clean Water, please contact Brenda at 717-234-8055.