In these times of partisan division, it’s important to recognize that one issue has united Michigan voters for over 50 years: Four times since 1968, they have approved by large margins the issuance of general obligation bonds to pay for critical environmental needs. But the last such proposal reached the ballot in 2002. Why?
It’s certainly not a lack of need. Cleanup of orphaned contaminated sites (where there is no viable polluter to pay) alone will cost billions. A 2021 assessment by the American Society of Civil Engineers included estimates of $18 billion over the next 20 years for wastewater treatment and conveyance, and an annual gap of as much as $1.1 billion for community drinking water supply systems in Michigan. There are also large unmet needs for stormwater, dam removal, and energy.
Using bonds to borrow money for these needs makes sense because projects have a large upfront cost, but pay benefits for a decade or two.
As an example of what environmental bonds can do, Michigan has taken action at over 3,125 sites since 1990 to protect public health, safety, and welfare and allow further redevelopment. Contaminated water supplies have been replaced at approximately 10,000 homes and businesses.
More than 500 sites have been prepared for redevelopment. The 1988 and 1998 bonds supported most of these projects.
Michigan voters approved:
- $335 million in wastewater bonds (1968);
- $800 million in two bond proposals for contaminated site cleanup, water infrastructure, waterfront redevelopment and parks (1988);
- $675 million for contaminated site cleanup, water, pollution prevention, and lead abatement programs (1998);
- $1 billion for wastewater and stormwater needs (2002).
There has been some recent legislative interest in environmental bond funds, including a $10 billion initiative. But no action.
It has now been 22 years since Michigan voters were asked to back bonds for Michigan’s environment. It should not take another 22 to ask them again.
