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Sustainable Water

Extending The Life Cycle Of Water

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California’s Conundrum: Water Tax or Water Trust?

California has a myriad of water issues.  The fact that nearly 1 million residents of the state have water coming into their homes with some form of contamination is, as Governor Gavin Newson said, “a moral disgrace and a medical emergency.”[1]  To address these issues that affect primarily low-income and rural districts, the democratic governor has proposed a fee that would charge between 95 cents and $10 each month to address water contamination, water system maintenance and domestic well testing.  The amount to be charged would be determined by the size of the water meter, and low-income households would be exempt.  The fee would apply to both residential and business customers and would be combined with other fees charged to “animal farmers, dairies and fertilizer companies,” for a total of $140 million annually.[2]

Democrats currently hold majority of legislative seats (75 percent); however, it will not be easy to pass the legislation.  A comparable plan under Gov. Jerry Brown was voted down by lawmakers in the last session.  Many lawmakers, on behalf of their districts, resisted the idea of new taxes, especially after the backlash from the gasoline tax increase of 2017.   Voters in one district spoke clearly on the issue of increased taxes, choosing to replace Sen. Josh Newman, who voted to increase the gas tax.

An additional impediment to the passage of the fee is an alternative proposal that is also under consideration, introduced by Democratic Senator Anna Caballero.  California Senate Bill 669 proposes a Safe Drinking Water Trust utilizing funds from the state’s current budget surplus estimated at nearly $30 billion, and it is gaining support from both parties.  Its hearing is scheduled for April 23.

[1] “Drinking Water Tax Proposed In California.” CBS Sacramento, CBS Sacramento, 20 Mar. 2019, sacramento.cbslocal.com/2019/03/20/governor-newsom-pushes-for-fee-to-clean-up-tainted-water/.

 

[2] “Drinking Water Tax Proposed In California.” CBS Sacramento, CBS Sacramento, 20 Mar. 2019, sacramento.cbslocal.com/2019/03/20/governor-newsom-pushes-for-fee-to-clean-up-tainted-water/.

Photo Credit:  GotCredit, Flickr

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