Economic Benefits of Water State Revolving Funds
The Clean Water and Drinking Water State Revolving Fund (SRF) programs are considered to be among the most successful infrastructure funding programs administered by the federal government and implemented by States.
The Water Environment Federation (WEF) and WateReuse Association recently conducted an analysis to estimate the economic impact of proposed increased
SRF appropriation levels, including taxes that return to the federal government, and employment and economic output that the spending generates. This study shows that:
- For every federal dollar of federal SRF spending, 21.4% is returned to the federal government in the form of taxes.
- Federal SRF allocations account for approximately 23% of total SRF spending, which also includes state matching funds and funds from state program loan repayments. Thus, the proposed $34.7 billion federal allocation will leverage an additional $116.2 billion in state spending ($151 billion total). Therefore, together, the proposed federal allocations and state SRF program funds will result in $32.3 billion in federal tax revenue. Thus, when leveraged state program funds are taken into account, every dollar of federal SRF spending results in $0.93 in federal tax revenue.
- The study also shows increased employment and labor income as well as increases in total economic output.
To download the study visit this link.