Commission supports state Senate bills aimed at easing water shutoffs

Published on February 06, 2024

Wayne County Commissioners today issued support for a bill package pending in the Michigan Senate aimed at ending the state’s water shutoff crisis. Stating that lack of access to safe drinking water is a major health issue, commissioners supported a bill package sponsored by state Sen. Stephanie Chang (D-3 rd District) and others that would offer financial support to those facing shutoffs while also addressing water affordability.

“Shutoffs have been a growing problem among low-income residents and it has only gotten worse in the aftermath COVID-19 crisis,” Wayne County Commission Chair Alisha Bell (D-Detroit) said.

Commissioner Jonathan Kinloch (D-Detroit), who sponsored the resolution of support, called the bill package a fair solution for all.

“No one benefits when families cannot afford to have fresh drinking water. These bills present a far-reaching approach to prevent that from happening. They also set specific guidelines for who is eligible and penalties for those who can afford to pay for services but don’t.”

The six-bill package includes:

• S.B. 549, which would authorize the state Department of Health and Human Services to ensure eligible customers do not pay more than 3 percent of their household income for water.
• S.B. 550, which would create a mandatory $2 fee on each water meter to create a fund within the Michigan Treasury to assist those facing water shutoffs.
• S.B. 551, which would prohibit providers from shutting off water service to residential customers who qualify under additional provisions of S.B. 549.
• S.B. 552, which would revise penalties for individuals who illegally restore their water service, if it was shutoff due to an inability to pay.
• S.B.553, which would add sentencing guidelines for those who violate provisions contained in S.B.552.
• S.B.554, which would allow renters to request a copy of their water bills from landlords or have the bills transferred to them.

While a majority of commissioners approved the resolution, support wasn’t unanimous. Some commissioners expressed concern about the program’s administrative costs. Others argued the proposed $2 fee should be voluntary.

In all, the resolution passed 9-4.

A copy of the resolution follows:

RESOLUTION
No. 2024-067

By Commissioner Kinloch

WHEREAS, on October 3, 2023, three bills were introduced in the Michigan Senate which, if enacted, would implement a multipronged approach to ensure that Michigan low-income residents who are unable to afford their water bills and who ask for help receive an affordable bill based on household income and avoid water shutoffs for non-payment; and

WHEREAS, poverty is persistent all across Michigan, including Wayne County, and there are customers who cannot financially afford to pay their water bills and therefore are not contributing to the much-needed investments in our water infrastructure to provide quality service, which affects the entire population; and

WHEREAS, water providers across the state require revenues to perform infrastructure investments that are vital to protect public health and safety, such as maintenance, repairs and replacement of aging infrastructure, building climate resiliency to prevent sewage backups into basements and overflows into natural waterways and removal of lead service lines; and

WHEREAS, Senate Bill 550 would create a low-income water residential affordability fund within the state treasury, which will be used to implement a residential water affordability program as funding permits and pay the difference between the original bill and the discounted rate under the affordability program, pay off arrearages and pay for plumbing repairs, and will be funded by a $2 per month fee on residential and nonresidential water bills; and

WHEREAS, the proposed $2 per month fee is similar to the Michigan Energy Assistance Program (MEAP) and Low-Income Home Energy Assistance Program (LIHEAP) for gas and electric utilities; and

WHEREAS, all customers currently cover the debt of customers who do not pay through the “bad debt expense” that is incorporated into rates the following year. The proposed $2 fee to fund the water affordability program ensures that low-income customers pay a portion of their bill, which will help reduce the “bad debt expense” and support infrastructure improvements; and

WHEREAS, Senate Bill 549 would create a state-administered low-income water residential affordability program under which qualifying individuals who apply for the program would not pay more than 3% of their household income on their water bill based on available funding and would allow water providers with qualifying programs to administer their own program and receive funds from the low-income water residential affordability fund to support their programs; and

WHEREAS, small water providers throughout the state do not have the ability to offer water affordability programs, and larger water providers do not have sustainable funding for their programs, like Lifeline or the Water Residential Assistance Program, without jeopardizing revenues needed for vital infrastructure projects. The proposed bills protect customers who rely on water service from any size provider in Michigan; and

WHEREAS, Senate Bill 551 would create the “Water Shutoff Protection Act,” which would require water providers to give various forms of notice to residential customers prior to water shutoffs, prevent water shutoffs for individuals enrolled in the low-income water residential affordability program and offer wraparound triage services if enrollees do not or are unable to make payments.

Now therefore be it

RESOLVED, that the Wayne County Commission on this 1st day of February, 2024 does hereby strongly urge the Michigan Legislature to pass Senate Bills 549, 550, and 551; and be it further

RESOLVED, that the Wayne County Commission supports efforts to ensure that residents avoid having their water shut off and also supports programs that provide funding and financial assistance to low-income families in Wayne County while simultaneously providing funding for needed infrastructure; and be it further

RESOLVED, that a copy of this Resolution be sent to the majority and minority leaders of both the Michigan House of Representatives and Senate and Governor Gretchen Whitmer.

Commission supports state Senate bills aimed at easing water shutoffs(PDF, 189KB)