ROYAL OAK, Mich. – Lawmakers from across Southeast Michigan rallied Monday in support of a water affordability bill now making its way through Lansing.
It would cap water bills at 3% of household income, add $2 to the average water bill to create a fund that would cover back bills for those who can’t afford them.
This bill came up for hearings last fall and Democratic lawmakers believe they have they now have the momentum to get water affordability assistance statewide.
What they’re suggesting is that $2 a month hike to put into a fund that would essentially wash away the problem of high water bills forcing people from their homes and keep local water authorities solvent.
“The statewide water affordability legislation is not only the moral thing to do for Michiganders who are struggling to make ends meet, it is also the smart thing to do for the financial stability of our water system and it’s the right thing to do to protect our public health,” said State Sen. Stephanie Chang.
Municipalities providing water face a tough problem when people can’t pay water bills. They often add the unpaid portions to property tax bills and the house ends up in foreclosure. They can offer other kinds of water assistance -- as Detroit has done -- or take the financial hit.
Chang said this idea is better.
“One of the things I am hopeful for is as we pay off arrearages, as we pay for people’s repairs in older households and get them water bills they can afford, eventually we might see that $2 go down,” Chang said.
According to Mackinac Policy Center’s James Hohman, the bill isn’t getting a rubber stamp in Lansing.
“If people cannot afford the necessity of water, then it is an indictment of our current welfare system,” Hohman said.
With the Earned Income Tax Credit, Medicaid, Home Heating Credits and assistance programs already in place, he believes an additional $2 is a non-starter.
“So clearly if this is a necessary and important program, they don’t need to raise taxes on some people in order to pay for it,” Hohman said. “There’s money in the budget already if it’s really a necessity, if it’s really important and if it’s a priority. It needs to be a priority set against the state’s other spending subjects.”
Detroit Mayor Mike Duggan said the federal government has long promised to send water affordability funds and the state can’t wait much longer.