Fast, affordable Internet access for all.
California Law Offers New Way to Finance Broadband Projects
On September 29th, California Governor Jerry Brown signed into law a bill that may make building community networks in his state just a [no-glossary]bit[/no-glossary] easier. The memorably-named “Assembly Bill No. 2292” allows broadband projects to be included among the types of public works that can be financed using Infrastructure Financing Districts (IFDs).
IFDs are entities formed by regional coalitions of city, county, or other governmental units. They are designed to provide upfront funding for infrastructure projects that have broad regional benefits (highways, water systems, etc.), and are paid for by earmarking the increased property or other tax revenue the projects are expected to generate over a specified future period (usually decades).
The idea behind IFDs - capturing future value to provide upfront funding to the projects that will create that value - is much like Tax Increment Financing (TIF) districts in other states. We have seen communities in other states turn to TIFs for broadband networks build outs, perhaps most notably throughout Indiana.
The text of the bill is all of three lines long, and simply amends the existing authorizing law for IFDs to explicitly allow infrastructure financing districts to be used for “public capital facilities or projects that include broadband.” While the old wording of the statute did not explicitly reject using IFDs for broadband projects, it did not explicitly allow it either.
Removing the uncertainty around the issue should help encourage local governments to consider network investments, especially since one of the major unpredictable costs is incumbent lawsuits. This change will slightly reduce the opportunity for incumbents to slow a municipal network with a lawsuit.
The bill was written and sponsored by Representative Rob Bonta, who represents parts of both Oakland and San Leandro in the Bay Area. It is no coincidence that San Leandro is a city seeing the benefits of robust fiber optic infrastructure, and San Leandro mayor reportedly pushed the idea to Rep. Bonta, who made the case for the bill as an economic development driver:
Broadband provides cities and counties with an opportunity to stimulate the economic climate by providing businesses with the competitive advantage of being connected to high speed fiber optic networks. AB 2292 will help boost local economies, create local jobs and increase access for schools, libraries and other public facilities to state of the art telecommunications networks.
While AB 2292 shows a growing awareness of the need for more public investment in broadband, it is far from a silver bullet. The political process necessary to create an IFD is cumbersome and challenging:
IFDs have to be approved by all the local agencies that would be contributing tax revenue, local property owners have to be consulted and then it goes through a series of public votes, including two – to form the IFD and then to issue bonds – that require a two-thirds majority to pass.
These are huge hurdles to clear for any major public project, and the California legislature recognized this by creating a new category of Enhanced Infrastructure Financing Districts (EIFDs) in this year’s session that are more flexible and lower the bar to a single public vote and 55 percent approval. Unfortunately, the bill creating EIFDs (SB 628) does not explicitly include or exclude broadband projects, falling into the same murky middle ground that the old IFD legislation did.
The end result of the California legislative session is a partial win for community broadband networks. They get new access to an existing financing tool, but only a taste of the new and improved system. The goal for the future should be clear: get next generation broadband projects definitively included in the Enhanced Infrastructure Financing District statute, so more local communities can start to enjoy the benefits of fiber the way San Leandro and Santa Monica do today.
New Bill Could Make Colorado Friendly State for Municipal Broadband
Digital Equity LA Summit Pushes CPUC to Ditch Priority Areas Map
Annual Digital Infrastructure Investment Event in Washington DC
Joined by an array of leading broadband experts, infrastructure investment fund managers, institutional investors, private equity, and venture capitalists will gather in the nation’s capital next week for a day-long in-person conference to discuss and explore the digital infrastructure and investment asset profile required to support a 21st century information economy.
Study: Low Income LA County Neighborhoods Pay More for Internet Service Than Wealthier Neighborhoods
A new study from the Digital Equity LA initiative lays bare how low-income communities of color are impacted by the quiet business decisions of the county’s monopoly Internet service provider. Slower and More Expensive/Sounding the Alarm: Disparities in Advertised Pricing for Fast, Reliable Broadband details how Charter Spectrum “shows a clear and consistent pattern of the provider reserving its best offers - high speed at low cost - for the wealthiest neighborhoods in LA County.” Not only does it highlight how economically vulnerable households in LA County pay more for slower service than those in wealthy neighborhoods, it also provides evidence for how financially-strapped households are also saddled with onerous contracts and are rarely targeted by advertisements for Charter Spectrum’s low cost plans.
Holland, Michigan Votes to Build Citywide Open Access Fiber Network
In early August, the city of Holland, Michigan (pop. 33,000) voted to fund the construction of a citywide, open access fiber-to-the-home (FTTH) network. It’s the culmination of almost a decade of consideration, education, planning, and success, and builds on decades of work by the Holland Board of Public Works (HBPW) and city officials to build and maintain resilient essential infrastructure for its citizens. It also signals the work the community has done to listen to local residents, community anchor institutions, and the business owners in pushing for an investment that will benefit every premises equally and ensure fast, affordable Internet access is universally available for decades down the road.
New York Public Housing Solutions, Cable Speed Increases, and the Effects of Inflation | Episode 54 of the Connect This! Show
Join us live on Thursday, September 22, at 4pm ET for the latest episode of the Connect This! Show. Co-hosts Christopher Mitchell (ILSR) and Travis Carter (USI Fiber) will be joined by regular guests Kim McKinley (UTOPIA Fiber) and Doug Dawson (CCG Consulting).