In this report, La Follette students analyze barriers to water infrastructure finance in Wisconsin and provide the Water Finance Exchange and the state with recommendations to support water utilities.
Summary
This report analyzes barriers to water infrastructure finance in Wisconsin. It evaluates small communities’ access to State Revolving Fund (SRF) loans — a primary federal program for water infrastructure project finance — and examines regionalized approaches to water service delivery. The analysis shows smaller water utilities are systematically less likely to engage with and ultimately receive SRF financing, implying that these systems feature lower levels of infrastructure investment. A review of state statutes indicates that Wisconsin treats regionalization primarily as a response to compliance or operational problems, making it difficult to pursue absent these challenges. Interviews with agency staff and utility member organizations suggest communities prioritize autonomy over rate-setting and are reluctant to regionalize due to concerns over annexation or the absorption of costs of other services provided by larger municipalities. The report recommends Water Finance Exchange identify opportunities for communities to leverage SRF financing, facilitate dialogue when regionalization is feasible, and emphasize the importance of loan forgiveness to state policymakers. It also recommends that Wisconsin take an active role in promoting regionalization, through the regulatory authority of the Public Service Commission and incentives from its State Innovation Grant program.
Information
- Course: Workshop in Public Affairs, PA 869, taught by Manny Teodoro, Spring 2026
- Authors: Sam Kaufmann, Luke Moore, Brett Neumann, and Annalisa Solis
- Client: Water Finance Exchange