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Commission hears staff: many grants have no expenditures; $33 million unobligated remains
Summary
Division staff told the Water Sector Commission that roughly $33.0 million in state program funds remain unobligated while scores of previously awarded grants show no expenditures; commissioners directed staff to contact those grantees and consider withdrawing awards if projects are not viable.
At the start of the meeting, Tracy Watts, with the division, told the Water Sector Commission, “we have an unobligated amount of 33,021,750.” Watts said all federal funds were obligated and the $33.0 million is state program money remaining in the Water Sector account.
Why it matters: Commissioners repeatedly returned to the question of how to redeploy money from projects that are not progressing. Watts told the commission staff had reviewed grant files and found a large number of awards with zero expenditures — some are under contract but have not submitted payment requests, several have permission to bid but have not advertised, and many show no projected construction start date.
Staff summary: Watts said the division identified roughly 20 grants in round 1 and 2 with zero expenditures, four grants in round 1 that have permission to bid but have not yet done so, and 19 grants that currently have no begin date for construction. The division reached out to those grantees to request status updates and will follow up with letters asking whether they intend to proceed; if not, staff said those awards may be placed on a future agenda for withdrawal.
Commissioner concerns: Several members emphasized the need to reclaim funds promptly if grantees forfeit projects. Senator Reese asked whether funds from grants that are not moving forward could be used up-front on projects that can immediately expend federal dollars; Watts confirmed that the division’s payment procedures allow grantees to draw program funds before documenting local match and document match on the back end under revised procedures.
Next steps: The commission asked division staff to send formal status letters to grantees identified as inactive and to present a list at the next meeting of grants recommended for withdrawal if applicants do not demonstrate a credible timeline.
Ending: Commissioners framed the outreach as an effort to free money for viable projects: “We would want enough time to get that redeployed, get an entity awarded, give them adequate time to plan and get money expended as well,” one member said.
