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This is a special issue of the Water Resources Coalition Newsletter. We want to keep you posted on President Obama's fiscal year 2010 Budget. | |
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Obama Administration Releases the Final Installment of the FY 2010 Budget Proposal
President Barack Obama today released the final installment of the $3.7 trillion fiscal year 2010 budget. The release of Obama's budget proposal has been closely monitored not only because it is the new president's first indicator of fiscal policy, but because he has repeatedly signaled that the budget would include funding cuts to guard against the rising federal budget.
The release of the Office of Management and Budget's (OMB) Analytical Perspectives volume marks the third and final installment of the budget, while the President's main priorities were released in February and the detailed spending request was released last Thursday. The following newsletter details the proposed funding levels for Water Resources Coalition priority issues.
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US Army Corp of Engineers - Reduction in Overall Spending
The administration budget proposal for the U.S. Army Corps of Engineers for FY 2010 reduces overall funding from $5.4 billion in fiscal 2009 to $5.1 billion. The Corps, however, did receive $4.6 billion in supplemental appropriations in FY 2009 through the American Recovery and Reinvestment Act signed into law in February, with $2 billion marked for construction.
Funding for construction projects would drop from $2.1 billion in the regular FY 2009 appropriations act to $1.7 billion under the administration proposal for 2010.
Other activities would see small increases in the budget. Operations and maintenance would increase from $2.2 billion to $2.5 billion in FY 2010. Funding for channel and harbor maintenance would rise from $982 million in 2009 to $1.1 billion in 2010. Spending on locks and dams maintenance also would increase, from $400 million in 2009 to $580 million. The budget for reservoir maintenance would receive a $150 million boost to $575 million, up from $425 million in fiscal 2009.
The proposal would decrease funding for flood-damage reduction projects in the Mississippi River Valley from $384 million in fiscal 2009 to $248 million. Spending on investigations, which identifies future project priorities, would fall from $168 million to $100 million, while funding for disaster preparedness would remain flat at $55 million. Funding for the regulatory program, which funds permit evaluations and enforcement, would increase slightly, from $183 million in fiscal 2009 to $190 million.
Spending on cleaning up contamination from early atomic energy work would drop from $140 million to $134 million under the White House proposal.
The proposed budget also includes an additional $2.8 billion for construction related to Hurricane Katrina and other 2005 storms. Nearly $2 billion is slated for authorized hurricane, storm and flood damage reduction projects in southeast Louisiana, including the Lake Pontchartrain and Vicinity Project and the West Bank and Vicinity Project. Money also would go toward the Southeast Louisiana Urban Flood Control Project.
The proposal includes an additional $2.9 billion for flood control and coastal emergencies related to Katrina. That cash would be directed toward efforts to protect New Orleans from hurricanes and storms.
Click here to view the U.S. Army Corps of Engineers - Civil Works portion of the FY 2010 Budget |
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Bureau of Reclamation - Budget Proposal Falls Short
The Obama Administration released the FY '10 budget request for the Bureau of Reclamation on May 7, 2009. The Water and Related Resources account (construction) was provided $893.1million. This was broken down by five major program activities -Water and Energy Management and Development ($311.7 million), Land Management and Development ($34.9 million), Fish and Wildlife Management and Development ($119.3 million), Facility Operations ($216.4 million), and Facility Maintenance and Rehabilitation ($210.8). Reclamation requested $9 million for the Title XVI Program, now a part of their $46 million proposed Water Conservation Initiative, and $64 million for Rural Water Projects.
In order to meet the increasing needs of growth and the economy of the West, the water recycling program and the rural water program of the Bureau should be fully funded each year with a stronger overall emphasis on drought contingency planning. A minimum of $1.3 billion annually is needed to address the overall aging infrastructure and construction needs of the Bureau's Water and Related Resources program.
The Water Resources Coalition is concerned that in recent years, the role and budget of the Bureau has been sharply reduced. To be adequately prepared for the challenges of the 21st Century, it is essential that Reclamation thoroughly examines its core capabilities in a number of key areas, as well as its ability to respond in an innovative and timely manner to emerging urban, agricultural and environmental needs. This effort is a significant opportunity to position Reclamation for excellence in managing its future as a citizen centered agency that delivers optimum value to its stakeholders.
The Bureau's detailed budget can be found at: www.usbr.gov/budget/2010/contents.pdf . At the end of the Bureau's Budget justification we would also like to draw your attention to their American Recovery and Reinvestment Act guidelines. |
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Environmental Protection Agency Sees Funding Increases
The Environmental Protection Agency (EPA) would receive $3.9 billion for water infrastructure programs under the FY 2010 budget. It calls for $2.4 billion for Clean Water Act State Revolving Loan Fund (SRF) projects and $1.5 billion for Safe Drinking Water Act SRF loans. These amounts represent a substantial increase in funding over the FY 2009 enacted levels. In 2009, the Clean Water SRF received $689 million and the Safe Drinking Water SRF received $829 million. The proposal also includes $168 million for clean and safe water research initiatives, up from $146 million in FY 09.
Click here for more information regarding the FY 2010 EPA budget. |
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Obama Budget Proposes Eliminating Ineffective, Duplicative Programs
The president's budget for Fiscal Year 2010 proposes to eliminate or reduce funding for a number of duplicative or inefficient programs, the White House said.
One program targeted for elimination is the "environmental infrastructure" spending added to the Corps of Engineers budget by Congress. Since 1992, Congress has authorized funding for an estimated 450 wastewater and drinking-water projects normally funded through the Clean Water Act and Safe Drinking Water Act State Revolving Loan Funds (SRFs). These projects received $180 million in Corps funds in FY 2009.
"Water and wastewater infrastructure projects, often referred to as 'environmental infrastructure' projects, are outside the Corps of Engineers' main mission areas of commercial navigation, flood and storm damage reduction, and significant aquatic ecosystem restoration," the budget said.
"The Corps does not assess the economic and environmental costs and benefits of these water and wastewater treatment projects and, therefore, has no basis to determine the value of these projects to the nation. Providing funding in the Corps of Engineers' budget for environmental infrastructure projects is not cost effective and duplicates funding for these types of projects in other federal agencies, including the Environmental Protection Agency and the Department of Agriculture. Congressional funding for these projects through the Corps bypasses those agencies' processes for setting funding priorities."
In a similar move, the budget proposes to eliminate congressional earmarks in the Environmental Protection Agency budget for wastewater and drinking-water infrastructure construction. The FY 2009 budget authorized funding for 301 projects added by members of Congress at a cost of $145 million.
"These grants are duplicative of funding available for such projects through the Clean Water and [Safe] Drinking Water State Revolving Funds, but are not subject to the state priority-setting process for these programs, which typically funds cost-effective, higher priority activities first," the budget explained.
"Additionally, earmarks single out projects and communities for greater subsidy than otherwise available through existing programs. These types of projects require more oversight and technical assistance than standard grants because many recipients are unprepared to spend or manage funds. Such projects also generally take several years to complete, requiring EPA resources for an extended period of time."
Click here to view all Terminations, Reductions, and Savings |
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WRC and the FY 2010 Budget
WRC will be working with the full House and Senate Appropriation Committees while they are developing and considering the Energy and Water FY10 Appropriation legislation (Corps and Bureau of Reclamation), as well as their consideration of the Interior and Environment Appropriation legislation (EPA). The Coalition will supplement its' earlier testimony for the record on each of these bills now that the full Budget details are available and work toward increasing those FY10 Budget requests during the legislative process. In addition, with most of the political appointees now about through their confirmation process, the Coalition will be working with the agencies as they prepare their FY11 Budget requests. | |
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Sincerely,
Brian Pallasch and Marco Giamberardino
Co-Chairs
Water Resources Coalition |
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