
National Rural Water Association
2915 S. 13th Street
Duncan, OK 73533
580-252-0629 FAX 580-255-4476
Contact:
Chris Wilson, nrwacw@nrwa.org
January 9, 2009
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Johnson Testifies before House Agriculture
Committee
Testimony of Robert Johnson
before the House Agriculture Committee Briefing on Rural Development
Chaired by Congressman McIntyre on January 7, 2009:
Thank you Mr. Chairman for the privilege of presenting Rural
America's need for water and wastewater and how that may impact this
economy. Today I will show how an investment in the USDA Rural
Utility Service Water and Waste Disposal Loan and Grant Program will
produce jobs and use products made in the U.S. faster and better
than any government program. How
can we speak with such confidence about the Water and Waste Program?
Mr. Chairman, I have worked with the National Rural Water
Association for 31 years and live near a small town named Loco,
Oklahoma. Water comes to my home from the Loco Rural Water
District, electricity from a Rural Electric Coop and communication
from a Rural Telephone Coop. The
RUS Water and Waste Program began in the 1960's and have a $9.9
billion portfolio with over 17,866 loans. Its high performance
history, demonstrates that these guarantees are achievable.
The USDA estimates that for every $1 billion that is spent in the
Water and Waste Program produces 23,000 jobs. These are green
jobs such as building or improving a wastewater or water treatment
plant, building water storage, or laying distribution or collection
lines that bring water to people or clean up wastewater and improve
the environment and public health. Products for these
improvements are made in the U.S.
Water and Waste Program has a history of getting money quickly into
Rural America. After the President signed the last Farm Bill
that included Water and Waste Backlog funding, these funds were in
Rural America in 77 days. In the prior Farm Bill, it took only
85 days. The Water and Waste
Program targets low and moderate income people in areas with
population lower than 10,000 people that are not able to obtain
commercial credit elsewhere. OMB
rates the RUS Water and Waste Disposal Program as the highest loan
program in the federal government. It loan delinquency rate is
0.53%. In other words, 99.47% are current on their payments -
higher than any government program.
There are two barriers that we would ask your consideration in
improving. The first is the limited grant authority poses a
significant problem for many low-income areas that may require
waiting years before significant grant funds are available.
Raising the amount of grant available would significant improve
low-income families getting water quicker. The second issue is
that frequently the environmental reviews take more time than the
engineering reports. The media
reports the number of entities asking for stimulus funds. Rural
America deserves a level playing field. Our association asks for
your consideration in: 1. Funding the entire
$3.4 billion Water and Waste Disposal Program's backlog of projects.
Of this, there are approximately $1.4 billion in completed
applications that can start as soon as funding is released.
There are another approximately $2.03 billion of incomplete
applications that are awaiting the completion of engineering reports
and environmental reviews. 2. Adding $15
million for technical assistance to expedite the projects and insure
repayment.
In summary, funding the RUS Water and Waste Disposal Program, the
governments highest rated loan program for $3.4 billion will produce
over 78,000 environmentally beneficial jobs and improve the health
of millions of Rural Americans. This will use produces made in
the U.S. and with a 99.47% repayment rate, the loans will be repaid.
Technical assistance will insure it.
This is an investment we can be proud of!
The briefing closed with a wise man from North Carolina quoting
Matthew 25:35,40 "I was thirsty and you gave me something to
drink. I tell you the truth, whatever you did for one of the least
of these brothers of mine, you did for me."
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