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W E E K L Y  U P D A T E  April 27th, 2020
 
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Debate Over Aid To States Sparks Interest in Disparities in State Balance of Payments to Federal Revenue

Recent opposition to federal aid to states facing fiscal crisis as a result of the economic fallout of the coronavirus crisis have brought a strong response based on long-time disparities in per capita state-by-state support for the federal budget, with New York among a handful of coastal and large states that contribute more per capita to the federal budget than they receive.

The unfavorable balance of payments issue is evident in a number of states in the northeast and midwest, in addition to New York, including Massachusetts, New Jersey, Connecticut, Illinois, and Minnesota, with each of these states likewise contributing more per capita to the federal budget than they receive. California also has an unfavorable balance of payments.

The full listing of this state-by-state balance of payments analysis, showing Massachusetts, New Jersey, and New York as contributing most disproportionately to the federal budget, is illustrated as follows:



The full report by the New York Comptroller published in 2018 was cited as the source of this state-by-state disparity of revenue contributed per capita to the federal budget vs. expenditures received per capita.

To view the complete report, click here. 

New York Comptroller Tom Napoli published this fourth study of the state-federal balance of payments for federal fiscal year 2018  in January 2020.
Senate Committee Releases Water Infrastructure and Drinking Water Discussion Drafts 
 
The Senate Environmental and Public Works Committee released two discussion drafts of water infrastructure and drinking water legislation last week that include numerous Great Lakes priorities, including addressing aquatic invasive species and rising water levels in the Great Lakes region. The first bill, which is called America's Water Infrastructure Act of 2020 (AWIA 2020), serves as the Senate's 2020 work towards the Water Resources Development Act (WRDA), legislation that Congress typically focuses on every two years. The bill authorizes approximately $17 billion for the Army Corps to conduct water infrastructure projects. Among the key provisions included in the bill for the Great Lakes are:
 
  • The formal authorization of the Great Lakes and Mississippi River Interbasin Study-Brandon Road project, which focused on preventing the spread of Asian carp to the Great Lakes;
  • An adjustment of the federal/local construction cost share of the Brandon Road project to 75 percent federal/25 percent local;
  • The authorization of a $25 million Great Lakes comprehensive flood protection study; and
  • The authorization of the Great Lakes Restoration Initiative (GLRI) in FY 2022 at $375 million. 
 
The second bill, which is called the Drinking Water Infrastructure Act of 2020, includes $2.5 billion in federal authorizations specific to the protection of national drinking water priorities. It reauthorizes programs under the Safe Drinking Water Act (SDWA) to provide resources and technical assistance to communities' critical drinking water needs.

A more detailed breakdown of the AWIA 2020 can be viewed here, and a more detailed breakdown of the Drinking Water Infrastructure Act of 2020 can be viewed here.

This Week in Washington

Normally scheduled House and Senate meetings have been curtailed due to the ongoing response to COVID-19.  

NEMWI: Strengthening the Region that Sustains the Nation