Officials with the Oklahoma Water Resources Board, or OWRB, estimate the state's water infrastructure crisis will cost taxpayers up to $24 billion by 2030.
Perry Republican Chuck Hall's Senate Bill 1333 aims to make a one-time allocation of $50 million to the board, rather than recurring, and create the "Water Infrastructure Enhancement Revolving Fund," a new low-interest loan program for local jurisdictions to make water-related improvements.
Hall's bill mirrors the request the OWRB made at a Senate Appropriations Subcommittee on Natural Resources meeting last month, except the money would not be committed yearly.
Lori Johnson is the chief of the financial assistance division at the OWRB. In an interview with KOSU, she said about half the request is to bolster existing local infrastructure programs.
"We currently administer a Rural Economic Action Plan, or REAP, grant for water projects; that has been underfunded for going on at least ten years now," Johnson said. "And so a portion of that 50 million we're asking to put towards that grant program, and then we're asking for a portion of that funding to go towards our already existing technical assistance programs, to just help bolster those programs so that we can help ensure that our workforce is trained and educated, so we can continue to recruit and have professional development for those those individuals."
The other half is for the state loan proposed in Hall's measure. Johnson said the details are still being worked out, but she envisions helping local communities leverage options outside of state bond and federal spending stipulations, which can make necessary improvements too expensive.
"So this is a program that maybe makes sense for maybe a smaller loan, $500,000 or less," she said. "For affordability purposes, because there will be less cost of issuance with this loan program. And so, trying to fill the gaps with what our current loan programs can offer versus competing."
Hall said he's aware of the dire need for water infrastructure improvements across the state, and his measure is meant to put water discussions 'front and center' through the appropriations process.
He struck the title as soon as he introduced it, leaving it open for changes to the numbers and the language.
"I wanted to be reflective, very public, of the OWRB's budget request," Hall said. "If I'm successful getting it out of this committee, I'll be striking the appropriation with the intent on working with all the authors related to water infrastructure needs to try to come together with a nice, comprehensive package that would be put forward by the Senate."
SB 1333 received a 'do pass' out of the Senate Energy Committee and was referred to the Senate Appropriations Committee for further review and a vote to move onto the floor. But lawmakers are working with a potential state agency budget shortfall this year. And Hall, as the Senate's fiscal chair, will be majorly involved in the balancing act in the months ahead.
Senate Pro Temp Lonnie Paxton provided his perspective during his weekly press conference last week, drawing from his time as the mayor of Tuttle.
"When I first went to the city council back in the 1990s in my community, I was one of those who said, I'm not going to get on here and start raising rates, you know … I was in my 20s and kind of hard-headed about any concept of raising rates," Paxton said. "Well, that was a pretty ignorant way to look at how you handle water infrastructure and sewer infrastructure."
If municipalities want help from the legislature to fix their water infrastructure, Paxton said, they should first answer about their rates charged to residents.
"What are you doing?" Paxton asked a hypothetical local city council. "Tell me what you're doing. Is your rate structure adequate? Don't ask the state of Oklahoma to be paying for your city's water infrastructure if you're not going to pay for part of it yourself."
