Funds dry up for state reservoirs

While North Georgia is still in a historic drought, state money for new water supply reservoirs has dried up.

Gov. Sonny Perdue and legislative leaders on Thursday suspended $40 million promised to build new reservoirs. Drought-proofing the state had been one of the governor’s top priorities for 2008.

Low-interest loans will still be available to local governments to build or expand reservoirs.

Perdue spokesman Bert Brantley said finding new water sources for the state’s growing population is still a priority.

“The issue here is there are a lot of priorities and we’re trying to meet the needs where we can,” Brantley said. “We’re in a situation right now that every dollar that is spent in one place means a dollar less to spend in another place.”

Perdue and other top elected leaders are looking to cut $1.6 billion from the state budget. Earlier this year, before the worst economic news hit, the budget was approved at more than $21 billion.

Shane Hix, a spokesman for the Georgia Environmental Facilities Authority, which is administering the new reservoir-building program, said 13 local governments had already applied for grants. They will not be getting any cash from the state, but they can still apply for low-interest loans, Hix said.

The state has $80 million available to disperse as loans for water projects, including $30 million in new funding that was added this year.

Todd Edwards, a lobbyist for the Association County Commissioners of Georgia, said this is the third time in two decades that the state has faced a bad drought, planned to build additional reservoirs, and then pulled back. In the past, rain dampened the enthusiasm; this time it is budget cuts.

“The longer we postpone the reservoirs, the more expensive they’re going to get,” Edwards said. “Let’s not sweep it under the table.”