Clean Water Committee Campaign in Full Gear; Ballot Proposal Would Provide $1 Billion to Protect Lakes, Rivers and Beaches.

Business Editors/Environmental Writers

LANSING, Mich.--(BUSINESS WIRE)--Aug. 29, 2002

A coalition of environmental groups, businesses and government officials lined up today across the state to call attention to the deteriorating condition of Michigan's sewer and water treatment systems, and the devastation they are causing to the state's waterways.

Speaking at press conferences in Grand Rapids, Flint and Harrison Township, the coalition members said that several billion gallons of untreated waste water, choked with untreated raw sewage and other toxins, end up in rivers, lakes and on beaches because the system is over-stressed and worn out.

"Whether you care about the environment, a strong economy or public health, there cannot be a more pressing issue involving all three than the condition of our aging sewer systems," said state Sen. Ken Sikkema (R-Grandville), chairman of the coalition. "If we don't change something now, we will only wind up paying a greater cost later -- not just for cleanup but also in terms of the cost to our way of life."

The coalition, known as the Clean Water Committee, is backing a ballot proposal that would increase by $1 billion the state's fund for repairing existing sewer systems. The state would be authorized to sell bonds to provide the increased funding. As a result, the influx of dollars for sewer improvements would be paid off over 20 years, and would not require an increase in taxes.

The plan, originally authored by Representative Bruce Patterson (R-Canton), was approved with overwhelming bipartisan majorities of both the State House and State Senate. Governor John Engler signed the legislation, but because it involves the sale of state bonds, the plan must be approved by the state's voters before it can take effect.

All across Michigan, deteriorated sewer systems are often overwhelmed and frequently overflow, particularly after heavy rainfall. The result is several billion gallons of untreated water, carrying human feces, pesticides and other toxins into rivers, lakes and beaches, coalition members said.

Michigan already allows local units of government to borrow from the State Revolving Fund (SRF). The fund was started with a federal grant and matched with state money from selling bonds. The fund is used to provide low-interest loans to local governments for their sewer repair needs. As the municipalities pay back the loans, the fund lends the money again (hence the term "revolving fund").

The problem, coalition members said, is the revolving fund doesn't have enough money to address the problem. While about $200 million in loans are made each year, the demand for loans is around $400 million, and could increase to as much as a half billion dollars ($500 million) each year. If passed, this bond proposal would double the amount of funding available to pay for these projects.

"We know the problem and we have the solution," said Lana Pollack, president of the Michigan Environmental Council. "By approving the Clean Water Bond Proposal, we can pump $1 billion into local infrastructures and make a decisive impact on the quality of our water."

Paid for with regulated funds by the Clean Water Committee, 118 W. Ottawa, Lansing, MI 48933