Committee advances water-infrastructure funding bill after broad debate over sources and scope

The Senate Agriculture Committee voted to advance House Bill 1681, a measure to create a program to provide state assistance for water and wastewater infrastructure needs. Sponsors and multiple witnesses described the bill as a targeted, short-term program intended to help smaller systems and address urgent capacity and public-health problems.

Representative (presenter) identified in the record as DanBot (House District 87) introduced the measure and said it is the product of years of work and stakeholder meetings: “Water isn't a red issue, a blue issue, a North South issue … Everyone in Arkansas deserves to have clean water,” the presenter said. The bill as discussed would create two funding “buckets” (one for larger systems that must provide matching funds and shovel-ready projects and another for very rural systems with more flexible requirements), limit the program’s initial scale and use an existing agency and rule process for administration.

Sponsors discussed possible funding paths. The bill text sets up a fund “consist[ing] of any revenues authorized by law” but does not insert a specific appropriation amount. Sponsors and members referenced prior drafts and negotiating signals suggesting $25,000,000 per year for a limited multi-year window (discussed as three years in debate, with some participants saying five years), but committee members repeatedly noted the bill as printed does not itself appropriate $25,000,000. Senator Jared Dismaine and others explained that, if money is to be released from surplus or restricted reserve accounts, the legislature must vote to do so; those approvals would require separate funding actions by the legislature in subsequent steps.

Multiple water-system managers testified in favor, describing rising cost estimates and construction inflation. Daniel Dawson, general manager of Searcy Water Utilities, said the statewide needs estimate rose from $5 billion in 2021 to $9 billion in a 2024 survey and attributed the increase to construction costs, improved data capture and inflation. “We have $100,000 repairs. … this kind of funding would go a long way to help especially smaller systems,” Dawson said. Michael Clayton, executive director of North Little Rock Wastewater, and Heath Ward, executive director of Springdale Water Utilities and legislative chair for the Arkansas Water and Wastewater Managers Association, also testified in support.

Several senators expressed concerns about funding mechanics and the potential for recurring expenses. Senator Hickey said he opposed the bill’s funding approach without a clearer plan for where surplus or interest earnings would be allocated and preferred projects brought before the legislative council (ALC) for a vote if funds are to be drawn from restricted accounts. Senator Dismaine and others said the bill is set up as a statutory funding structure (not an appropriation) so the detailed funding decisions remain subject to later legislative votes and to rulemaking by the administering agency, which would report to the ALC.

After debate and public testimony the committee moved to a voice vote to pass the bill; the chair announced the motion carried. Sponsors and witnesses said the bill is intended as a stop-gap targeted program and implementation would require follow-up legislative action to allocate specific surplus or interest earnings.