Lawmakers talk funding for water, broadband projects through local government

FRANKFORT, Ky. (WTVQ) – A Budget Review Subcommittee co-chaired by Representative John Blanton of Salyersville met Wednesday to discuss the Drinking Water and Waste Water Grant Program and broadband expansion funding by the Kentucky Infrastructure Authority.

The subcommittee also heard from the Department for Local Government regarding the distribution of federal COVID-19 relief funds to local governments.

The committee heard from Jim Gray, Secretary of Transportation Cabinet. Gray explained that the Drinking and Wastewater Program starts with the planning, design and construction of costs for the water and sewer projects that pose a social, economic, or environmental impact.

The projects are funded by the American Rescue Plan Act of 2021 Coronavirus State Fiscal Recovery Fund.

The General Assembly appropriated $250 million in the 2021 Regular Session to the Drinking and Wastewater Program.

Representative Suzanne Miles, House Majority Caucus Chair posed a few important questions to Secretary Gray and the Kentucky Infrastructure Authority, “Is the cost of the projects subject to an increase due to the access? Do you all have any advice on how to combat that? Are you trying to encourage or discourage counties from waiting to use the allocation?”

Gray explained that price escalation is occurring across the board.

“We plan to take it one day at a time,” said Gray. “The bids may exceed the original appropriation. Funds for public and private companies are limited by statute. Therefore we are required to apply the money to governmental companies.”

The contract bid amounts are subject to increase due to the rising costs of equipment, parts, and labor.

The General Assembly appropriated $300 million in the 2021 Regular Session towards increasing broadband.

The Broadband Deployment Fund assists governmental agencies and private sector entities to construct infrastructure for the deployment of broadband services to the underserved and unserved areas of the Commonwealth.

The program will team with private providers to provide broadband service to residential, commercial, and industrial customers throughout the state.

Representative Michael Meredith, R- Edmonson, expressed concerns with the cost escalations.

“We shouldn’t price ourselves out of the project trying to give people that currently have very little to nothing the same service as those in the metropolitan areas. It is better to have a good bit of something than all of nothing,” said Meredith.

Representative Nancy Tate, R- Brandenburg, requested monthly status reports on broadband and water grants. Blanton agreed with Tate in the request for status reports.

The committee also heard from the Department for Local Government regarding how local governments can use the money allocated to them.

Some of the ways include: supporting public health, paying essential workers a premium, and replacing lost revenue.

For full details of the meeting, please visit legislature.ky.gov or follow the link here for the meeting materials. To watch the full meeting, visit the Legislative Research Commission YouTube page here.