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County staff warn long-term decline in state SRF and grant funding could leave disadvantaged Tulare communities short on water projects
Summary
County staff told commissioners that state drinking-water and reuse funding is projected to fall sharply over the next three fiscal years, creating nearly a $1 billion shortfall for these programs and placing local ARPA-funded and federal‑earmarked projects at risk of delay or incompletion.
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Tulare County staff reported to the Water Commission that state drinking‑water State Revolving Fund (SRF) allocations and related grant streams are projected to decline substantially, with a county estimate of nearly a $1,000,000,000 funding gap across the next three fiscal years.
Denise Ingla summarized the state board’s intended‑use‑plan discussion and said state investments that rose after 2019 are now contracting. "In the over the next three fiscal years, we're looking at almost a $1,000,000,000 funding gap in these programs," she said, noting that cap‑and‑trade (GGRF) dollars, state general‑fund contributions and federal pass‑throughs together have supported many projects and that those sources are tightening.
Ingla outlined impacts for Tulare County: the county allocated about $12,000,000 from ARPA for local projects but those agreements expired June 30 and some projects (for example, a Tipton well) remain unfinished. She said some ARPA funds have hard spend deadlines (one cited project must spend ARPA dollars by Dec. 31, 2026) while certain federal earmarks carry longer draw periods (about five years). Several small communities—including Plainview, Allensworth and Tipton—continue to face outages or wells that are out of compliance.
She also described program mechanics: some bottled‑water services (about 1,500 households) are handled through contract arrangements (Self‑Help Enterprises was cited as a contractor for management zones), and if SAFER funding declines the county and nitrate management zones may be expected to backfill those costs. Ingla said the state board will adopt the intended‑use plan in August, and the commission plans to send additional letters to request funding for county projects.
Commissioners asked for follow‑ups on well replacements and the status of registered wells under SGMA; staff said Greater Kaweah has registered roughly 2,000 of an estimated 4,000 wells and that subsidence and well‑registration meetings with the Department of Water Resources are forthcoming.
The commission accepted the report and requested staff return with updates and correspondence for the Board of Supervisors as state actions proceed.

