Local Project Financing
Funding for coastal projects has evolved since the first project placed sand on the shores of Coney Island, New York in 1923. The increasing size of projects, science, and environmental parameters have led to variations in cost. Federal projects are usually funded up to 65% federal funds and 35% local costshare funds. Some states have dedicated funds to support beach renourishment, but these funds can be as fickle as the federal process. Communities seeking autonomy in their projects can utilize local funding strategies to fully or partially fund projects.
Read our 2-pager on Local Funding for Coastal Projects (pdf 1MB)
Read our new report: Local Funding for Coastal Projects: An Overview of Practices Policies and Considerations (pdf 6MB)
Local Funding tools:
Communities have many ways to raise and leverage funds for coastal restoration projects, including:
- Special Taxing Districts
- Erosion Control Districts
- Geologic Hazard Abatement Districts
- Inlet Management Districts
Each of which are based on property values, and the following, which are based on use:
- Sales, Excise and Use Taxes
- Tourism/Bed/Occupancy Taxes
- User Fees
These revenue tools can be used with financial instruments tailored to coastal projects to provide upfront and/or diversification of financial risk:
- Green Bonds
- Environmental Impact Bonds
- Catastrophe Bonds
- Parametric Insurance
Learn more about these in our new report: Local Funding for Coastal Projects: An Overview of Practices Policies and Considerations (pdf 6MB)
We are collecting information to help us better understand how local shoreline projects often rely on blended streams of funding — local taxes, grants, state cost-share programs, etc.
Of course, federal investment in coastal restoration is critical to supplement local funding efforts, and ASBPA advocates to ensure federal funding for coastal restoration, resilience and research is, at minimum, maintained at current annual levels. ASBPA is also working with Congress to support policy for long-term coastal funding connected with coastal development and offshore energy production (both renewable and fossil fuel).
The best advocates for federal funding in coastal restoration are the communities and people who are managing projects on a day to day basis. ASBPA is eager to help you tell your story to federal decision-makers in Congress or in federal agencies.
Reach out to Derek Brockbank if you will be in DC and would like help meeting with federal officials.