Florida TaxWatch recently released commentary titled, Could Florida Experience a Significant Water Supply Shortage by 2025? Excerpts follow:
In June, the Florida Office of Economic and Demographic Research (EDR) released an updated report detailing Florida’s water supply. According to the report, Florida could experience a water supply shortage as early as next year (2025), and it is expected to increase in severity through 2040. The state’s continued rapid economic and population growth underscores the need for a consistent, comprehensive, and coordinated statewide strategy for funding water projects.
HUGE PRICE TAG
The EDR projects that Florida will need to invest an estimated $1.7 billion for critical water projects through 2040 to avoid a significant water supply shortage. This $1.7 billion price tag is only an estimate for addressing the inferred water supply shortage and does not consider other projects associated with restoration and certain infrastructure
(e.g., stormwater and wastewater) needs. Projects such as Everglades Restoration are also not part of the estimates because there is a separate plan in place for its restoration. Thus, the actual costs of protecting Florida’s water resources are almost certainly much higher than what these estimates show.
SUSTAINING POPULATION GROWTH
Florida has the fastest growing economy of any state. With an estimated population of 26.4 million people by 2040, this projected shortage will have a large impact on Florida households and the economy if it is not properly addressed. Florida will not be able to sustain this economic and population growth absent a consistent, comprehensive and coordinated statewide strategy for funding water projects.
In the General Appropriations Act for Fiscal Year 2024–2025, there were 281 water-related member projects identified by Florida TaxWatch as budget “turkeys” (totaling $410.3 million). These 281 member projects did not go through one of the proper channels to receive funding. This circumvention of the budgeting process shows the need for a more comprehensive planning process to address these selection and funding issues.
Florida will not be able to sustain the continued level of growth it has seen over the recent years without dramatically improving how it selects and funds water projects. With less than 40% of the water supply projects having committed funding, the remaining 60% will have to come from local, regional or federal funding sources.
CONCLUSION
Florida’s growing economy and population increase the demand for water, and it is expected to continue to increase beyond 2040. Creating a coordinated and comprehensive program that addresses Florida’s statewide goals is critical. Even though the Legislature has made significant investments in water project grant programs, it is not enough. To meet the growing demand for managing these resources, the Legislature should consider implementing a Five-Year Water Project Work Program, similar to the Florida Department of Transportation Five-Year Work Program.
Source: Florida TaxWatch
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