LANSING, Mich. (Michigan News Source) – Legislators are proposing adding a $2 monthly fee on each retail water meter to create a fund that could be used to subsidize low-income residents who can’t afford to pay their water bill.
There is a package of bills that would create a Low-Income Water Residential Affordability Program that would allow customers with a household income of up to 200% of the Federal Poverty Guidelines and would not pay more than 3% of the customer’s household income on a water bill.
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That fund is estimated to reach $90.0 million in the first 18 months and could be used to help subsidize other low-income customers, according to the Senate Fiscal Agency.
The legislation is Senate Bills 549 through 554 and was proposed by the Democrats but at least one Republican has signed on.
“We are the Great Lakes State, surrounded by fresh water, but many Michiganders do not have the same access to water due to their financial situation,” said Democratic Sen. Stephanie Chang in a press release. “It should not matter how much money you have — every human being needs water to live. It has been a long journey working on the issue of water affordability since I took office in 2015.”
Republican Sen. John Damoose has introduced a similar bill and also has supported the Democrats’ version of the bill.
The Detroit Water and Sewer Department has developed an income-based water affordability plan where residents enroll in the program and have their past debt erased. Their water bills could be as low as $18 a month.
The city of Detroit has stated over the next five years it plans to spend $1.05 billion on water and sewer improvements.
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