MAINTAINING THE BALANCE:
WHITE RIVER LAKES PROVE TO BE GREAT TAXPAYER INVESTMENTS

(This is the final installment of a seven part series from the Army Corps of Engineers explaining how and why the agency operates six multi-purpose lakes in the White River basin.)

LITTLE ROCK, Ark. -- Growing competition over use of the White River basin lakes indicates their high value as taxpayer investments. An even greater indicator is that their direct benefits were more than four times their operating costs last year. Furthermore, their indirect benefits help enhance the environment, energize the economy and improve quality of life.

On a budget of $35.9 million in fiscal 2004, the Army Corps of Engineers operated and maintained the various aspects of Beaver, Bull Shoals, Clearwater, Greers Ferry, Norfork and Table Rock lakes. During that year these lakes returned $156.1 million in the form of flood losses prevented and dollars to the U.S. Treasury, not Corps coffers, to repay the American taxpayer’s investment with interest.

A breakdown of the costs and benefits looks like this. The Corps spent $7.5 million in fiscal 2004 operating and maintaining flood reduction aspects. In return, the lakes prevented about $73.4 million in flood losses to homes, farms, businesses, roads and other property. Congress considered this part of the nation’s payback when it funded construction of the lakes. Unmeasured indirect benefits include human suffering averted, businesses and farms kept viable, communities not disrupted and lives spared.

Last year, the Corps spent $10.1 million to operate and maintain the five hydropower plants. Southwestern Power Administration sold the electricity for about $78.9 million. Revenues after Corps and SWPA expenses return to the U.S Treasury to pay off with interest the cost of the power plants and a portion of the lakes. Other benefits include more affordable electricity, cleaner air and less reliance on fossil fuels. This helps communities, industries and farms remain competitive.

Water supply costs totaled about $80,000, yet returned $471,000 to the Treasury. Again, funds left after expenses go toward helping pay off the amortized costs of building the lakes. But most importantly, thousands of homes, businesses and farms have reliable water supply. This is crucial to the health and economies of the communities served. Without adequate water supply, an area has little hope of attracting new industry.

The Corps spent $15.7 million operating and maintaining parks in fiscal 2004 at the lakes and collected about $3.3 million in user fees. While this looks like a significant loss, consider that state tourism agencies in Missouri and Arkansas report travel expenditures totaled $1.56 billion in 2004 in the 14 counties where these six lakes are located. Of course, the lakes are not the only reasons visitors come to these counties, but they are critical to the tourism mix.

The Corps also spent an estimated $2.5 million on environmental stewardship projects and activities at the lakes. While there is no direct return to the Treasury, this environmental stewardship is a continuing investment in the future of these lakes and their ecosystems.

These lakes are providing a great return on the American taxpayers’ investment. Officials say that while they expect continued pressures to alter storage allocations and operating plans, with proper stewardship, these lakes will continue to serve future generations, perhaps in some new and different ways.