Senate News Update
From Senator Jane Earll
June 6, 2008

Infrastructure Needs to be Met

Many Erie County senior citizens live in areas with stormwater problems, and some live in areas without public water or sewer lines.

For these citizens, and everyone living in communities with aging or inadequate infrastructure, the need for improvements is something that affects their everyday lives.

While the need is clear, one of the biggest challenges facing communities throughout the Commonwealth is the funding of infrastructure improvements. One estimate puts the cost of modernizing Pennsylvania's existing water and sewer systems at more than $11 billion.

That's an enormous sum of money, and too much to tackle all at once. But we can start with a down payment.

I recently joined Senate colleagues to announce H2O PA, a plan to provide $750 million in funding for critical water and sewer projects, storm water projects, flood control projects, and high-hazard dam repairs.

The $750 million H2O PA bond issue – introduced as Senate Bill 2 – will be funded with revenue from the Pennsylvania Gaming Economic Development and Tourism Fund. This funding program will be available for projects throughout Pennsylvania, with a first priority being given to those involving consolidation and a second priority being given to those involving regional projects.

To be eligible for funding, a project must be owned by a municipality or authority, and must include local matching funds totaling at least 50 percent of the project cost. The Commonwealth Financing Authority will evaluate applications, with the Department of Environmental Protection and the Pennsylvania Infrastructure Investment Authority (PENNVEST) providing technical review and assistance. 

Because they have already benefited from projects funded through the Pennsylvania Gaming Economic Development and Tourism Fund, Philadelphia and Allegheny counties will not be eligible for funding from H2O PA until Fiscal Year 2016-17.

Like a leaky faucet or a cracked driveway, the problem of crumbling or incomplete infrastructure doesn't just go away. We have to address it, and we have to do it in a way that's fiscally responsible.

The H20 PA approach of utilizing the gaming revenues to fund critical water and sewer projects, storm water projects, flood control projects, and high-hazard dam repairs would be a wise investment in our future.

As always, if you have questions on this or any state government matter, please do not hesitate to call my office at 814-453-2515.