By Rich Anderson
September 15, 2008

The U.S. Bureau of the Census recently reported information on local and state government expenditures for FY2006. Data on public water and sewer confirms the long'standing trend of increased spending. Combined local government spending on water and sewer for FY06 was $85.4 billion; an increase of $4.4 billion over FY05 (a 5.4 percent increase). By comparison, federal financial assistance through the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund loan programs totaled $1.7 billion for 2006.

Local government spending on sewer increased the most at $2.5 billion over FY05, (or 6.9 percent). Over the fifteen year period of FY92 to FY06 the average increase in spending on public sewer is 4.7 percent; (and in three of those fifteen years spending decreased over the previous fiscal year). Total spending over the fifteen years is $405.6 billion.

Local government collects revenues from system users as a government enterprise. FY06 public sewer revenues totaled $33.8 billion, a 6.5 percent increase over the $31.6 billion collected in FY05. Revenues from public sewer service generally increase by an average of 5.4 percent per year. Sewer service revenues, overall for local government, rarely match expenditures; and for FY06 revenues reached 88.9 percent of expenditures. The 15-year average ratio of revenues to expenditures for public sewer is 88.2 percent.

Local government spending on water in FY06 increased by $1.9 billion over FY05 spending, (or 4.3 percent). Over the fifteen year period of FY92 to FY06 the average increase in spending on public sewer is 4.8 percent; (only in one of those fifteen years did spending decrease over the previous fiscal year). Total spending on public water over the fifteen years is $521 billion.

Local government collected $40 billion in revenues from public water services in FY06, a 7.7 percent increase over the $37.2 billion collected in FY05. Revenues from public water service generally increase by an average of 5.4 percent per year. Public water service revenues, overall for local government, rarely match expenditures; and for FY06 revenues reached 83.9 percent of expenditures.