Tuesday, October 28, 2008

PA Ballot Questions



Ballot Questions 1-2: "Do you favor the incurring of indebtedness by the Commonwealth of $400,000,000 for grants and loans to municipalities and public utilities for the cost of all labor, materials, necessary operational machinery and equipment, lands, property, right and easements, plans and specifications, surveys, estimates of costs and revenues, prefeasibility studies, engineering and legal services and all other expenses necessary or incident to the acquisition, construction, improvement, expansion, extension, repair or rehabilitation of all or part of drinking water system, storm water, nonpoint source projects, nutrient credits and wastewater treatment system projects?"

Summar of the Question

  1. Allow the government of Pennsylvania to borrow $400,000,000 ($400 million) to make grants and loans to municipalities and public utilities for the acquisition, construction, improvement, expansion, extension, repair or rehabilitation of drinking water system, storm water and nonpoint source projects, nutrient credits and wastewater treatment system projects.

  2. The measure explicitly defines the terms in includes (for example, it defines "drinking water system" as something that "consists of reservoirs, wells, water treatment facilities and equipment such as pipes, tanks, filters and pumps, which collect, treat, store and supply safe drinking water for public use").

  3. Only $200,000,000 ($200 million) may be used in outright grant to municipalities. The remainder would have to be disbursed as loans to those who qualify for the funds.
    The amount of a grant, loan, or combination of grant and loan awarded for a project may not exceed the monetary limits set by Act 64 of 2008, which vary based on the annual average daily flow of a sewage treatment system or the population served by a water system.

  4. The total cost of repayment will be an estimated $621 million, with an annual cost of $31 million after all the debt is issued ($11.2 million and $23.1 million in 2009-10 and 2010-11, respectively).

Pros and Cons

Supporters of the referendum argue:

  • $400 million is only a small portion of the almost $20 billion needed to ensure clean water and consumer safety.
  • This year the federal budget cut $42 million in state water and sewer funding as municipalities are facing expensive improvements due to new EPA regulations.
  • Those in favor of the bond believe making more funds available to municipalities will create jobs and stimulate the economy.


Critics of the referendum argue:

  • The question facing voters is less about whether Pennsylvania needs additional funding for water and sewer infrastructure, but whether the state needs additional revenue to pay for it.
  • Pennsylvanians already owe $110 billion in state debt, not including the additional $3 billion passed in the 2008-09 state budget.
  • Opponents are skeptical of taking on new debt in the current economic climate given the legislature's history of spending
(Above Information was copied by the PA State Election Website, http://www.electionreturns.state.pa.us/ElectionsInformation.aspx?FunctionID=16&ElectionID=28&QuestionID=15

For me I do not think that the tax payers of this district of any district should have to pay for this project. In 1996 the state voted to approve the amount of 64 million for the clean water and sewer act which ended up costing jobs and not being effective at all. I would have to vote NO on these questions due to the fact thier seems to be no mention of longterm achievement. For example there is no mention about the job created what will happen once the job is completed. I will have to disagree with the Mayor and vote NO. If this proposal had an econimic recovery program part of it then I would vote for it hands down but since the price ceiling seems not to be attached to it at all. But look at the information above and make the decission your self and at least the bill proposal doesn't have an earmark attached to it.

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