Why does SPSA have insufficient funds to meet its expenses and pay its debt?
Over the years, the board of directors of SPSA, which is comprised of representatives from each of the member localities, has sought to keep fees as low as possible for their citizens. This required that SPSA’s major expenses had to be funded through borrowing. In addition, SPSA’s disposal operations, including recycling, were designed, financed and constructed based on “flow control” or a requirement by law that it would receive all of the solid waste in the region for both commercial and residential waste. SPSA built facilities, thus incurring debt, with a capacity to accept this anticipated waste. However, in 1994, the US Supreme Court ruled that flow control was unconstitutional, which then allowed private waste haulers to take their waste to non-SPSA waste facilities. During this period, significant debt was accumulated. In 2007, the US Supreme Court reversed its earlier decision on flow control. Chesapeake and other localities in the region voted to implement flow control, under
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