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This week, Congress will finalize the fiscal year (FY) 2011 budget which includes approximately $39 billion in spending cuts from FY10 spending levels.  NACWA is sending this Advocacy Alert to inform its membership of funding reductions to programs of interest in the recent budget compromise reached between Congress and the Administration.   In adopting this budget for the remainder of the fiscal year, Congress and the Administration will have avoided a federal government shut-down.  As final negotiations were concluding, an additional .2% across-the-board cut was made to all non-defense items to meet additional spending reduction demands by congressional Republicans.

The U.S. Environmental Protection Agency (EPA)
EPA’s budget will be cut by $1.6 billion with just over $1 billion in cuts coming from the Clean and Safe Drinking Water Revolving Funds (SRFs).   In part because it is the largest program in EPA’s budget, Congressional leaders relied on the SRFs for a majority of cuts to EPA’s budget.  NACWA believes this is misguided given the significant water infrastructure needs and water quality challenges facing states and local communities as well as the growing number of federal requirements with which utilities must comply.  Specifically, the CWSRF will receive approximately $1.494 billion and the DWSRF will receive approximately $945.7 million.  Funding for regional water quality restoration programs also saw reductions in the budget compromise.  The Great Lakes program will receive $300 million, a reduction of $175 million from levels provided in FY 2010.  In addition, the compromise includes $116.87 million to be shared among the remaining geographic programs such as the Chesapeake Bay, Puget Sound, Long Island Sound.

The final compromise did not contain any of the sixteen environmental policy riders aimed at curbing EPA's regulatory authority over several contentious issues including water quality issues affecting the Chesapeake Bay and the State of Florida.

U.S. Department of Agriculture- Conservation Programs
Agricultural programs administered by the U.S. Department of Agriculture (USDA) were also targeted for cut-backs, including an overall cut of $3 billion from FY10 levels.   Specific cuts include a $238 million reduction to the USDA’s conservations programs including a $119 million cut to the Wetlands Reserve Program, a $39 million cut to the Conservation Stewardship program, and an $80 million cut to the Environmental Quality Incentives Program.

NACWA will continue to provide additional information updates on the finalization of the FY 2011 budget and the development of the FY 2012 budget.  In the meantime, please contact either Pat Sinicropi, This e-mail address is being protected from spambots. You need JavaScript enabled to view it , or John Krohn, This e-mail address is being protected from spambots. You need JavaScript enabled to view it ,with any questions you may have regarding the budget process.  NACWA will provide additional details as they become available.