However, other processes increase the rate of streamflow to the oceans. These include groundwater mining (or pumping of groundwater at rates exceeding the natural recharge rate), deforestation, and urbanization. Deforestation reduces the infiltration capacity of the soil due to compaction by heavy logging, farm machinery, overgrazing and trampling by cattle, and increased soil erosion. In newly cleared areas, runoff usually increases, especially in the rainy season, leading to greater chances of flooding. Urbanization expands the area of impermeable surfaces, which impedes infiltration of rainwater, reduces evapotranspiration, and thus augments streamflow. The combined effect of these processes is to increase sea level by 0.4 to 0.9 mm/yr.
http://www.giss.nasa.gov/research/briefs/gornitz_06/
That accounts for most of the sea level rise seen by tide gauges.
Yes it does, however they are still exaggerating even about this. It is another SWAG that is supported by extrapolations of intuitive guesses.