Priority,
from page 1
The reality is likely worse
than the FCC reports. Their
statistics are based on self-
reported data submitted by
Frontier, and almost no one
outside the company trusts it.
Speed tests conducted by the
state’s Broadband Enhance—
ment Council found that
Frontier delivered internet
across the state at less than
half the 25 megabits per sec-
ond required by the Federal
Communications Commis-
sion to qualify as “high-
speed.”
So lawmakers want to try
a new approach.
Promoting
competition
The lawmakers’ vision is
simple: replace Frontier’s
monopoly over the state’s
rural intemet service with a
patchwork of competitors,
including West Virginia
companies and local govem-
ments like cities and coun—
ties. A combination of
competition and local own-
ership, politicians reason,
will ensure that the state’s
communications network is
upgraded and maintained
long into the future: a task
that Frontier has shown itself
either incapable or unwilling
to do.
And now, the roadmap that
lawmakers will take to try to
make this happen is becom-
ing clearer. First: provide a
leg up for Frontier’s com-
petitors, who, unlike the
telecommunications giant,
don’t have access to billions
of dollars in capital from
Wall Street.
Two bills have already
been introduced during this
year’s legislative session to
help achieve this. One, SB 2,
would codify into law Gov.
Jim Justice’s executive order
increasing the amount of
loan guarantees the state will
offer telecommunication
companies. These loan guar—
antees are crucial because
they allow smaller compa-
nies to compete for subsidies
from the Federal Communi—
cations Commission, which
looks at a company’s balance
sheet in order to determine if
it’s capable of delivering on
its commitments.
The second, HB 2002,
would make it faster and
cheaper for telecommunica-
tions companies — and local
governments — to install
fiber by allowing them to
piggyback on the poles and
trenches of other utilities.
This bill has bipartisan sup-
port, and has already sailed
through committee and will
soon be debated on the
House floor.
The bill’s sponsor, Dele-
gate Daniel Linville, R-Ca—
bell, summed up its potential
imes .com
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impact: “It’s going to speed
deployment. . . it makes more
projects feasible.”
But that’s not all the bill
would do. It also lays the
groundwork for more state
and local control of West
Virginia’s broadband net—
work, and defines the role of
the state’s new Office of
Broadband, which will be
tasked with mapping the
areas of the state that are cur-
rently unserved — and un-
derserved — by Frontier and
other telecommunications
companies.
Historically, this is a role
played by the FCC — but
their data is flawed. The fed—
eral agency also continues to
send hundreds of millions of
dollars to Frontier — so state
officials want to take over
the responsibility of identify—
ing underserved areas of the
state, a crucial part of any ef-
fective grant-making pro-
gram.
Finally, the bill enshrines
in law the ability of cities
and counties to compete with
telecommunications compa-
nies and build their own fiber
networks; this is a strategy
already being attempted in
Putnam County and South
Charleston. A majority of
states ban the practice, but
West Virginia is now actively
promoting it.
But where is the money?
Efforts by state lawmakers
to fight Frontier are not new.
Lawmakers have long
chafed at Frontier’s treat-
ment of the state. But this
time may be different. This
time, lawmakers have prom-
ised to back up their rhetoric
with money.
In October, the governor
stood on the steps of the
Capitol, flanked by House
Speaker Roger Hanshaw, R-
Clay, and other Republican
lawmakers, and promised to
bring a billion dollars to
West Virginia to build better
broadband.
But Justice has a history of
making grand promises that
never materialize, and there
have been warning signs that
that could happen again. The
governor included $50 mil-
lion in CARES Act pan—
demic relief funds in the
billion-dollar commitment
— but used much of it on un-
related projects. The bulk of
the remaining funds was sup-
posed to come from the Fed-
eral Communications Com-
mission, but the agency has
o<®®f§3§3§§é®
so far committed only $350
million, a result of aggres—
sively low bidding by Fron—
tier as the company promised
to build more fiber for fewer
subsidies.
And then there’s the $150
million over three years from
the state that Justice prom-
ised in October. Since mak-
ing the announcement, the
governor has offered no ad-
ditional details about where
the money will come from or
how it will be distributed. It
wasn’t mentioned in the gov-
ernor’s annual address,
where the governor alluded
to “bold steps” he’d already
made on broadband while
warning “we got to do
more.” Nor was it included
in a draft budget given to
legislators earlier this month.
“I’m looking through [the
budget] thinking — OK,
doesn’t appear to be a prior—
ity — because you’re not
talking about it, you’re not
giving us a plan, and there’s
no money to fund it,” said
Delegate Joey Garcia, D—
Marion.
But Republican lawmak-
ers said not to worry. The
money is coming, House
Communications Director
Ann Ali said after conferring
with Hanshaw in a Capitol
hallway.
Linville was also confi-
dent that the legislature will
find the money. Lawmakers
could directly appropriate
the money out of the state’s
surplus, he explained, which
could circumvent some of
the laborious budgeting
process.
But broadband isn’t law—
makers’ only priority, and
whatever plan they come up
with will eventually land on
the govemor’s desk. Justice
has made clear that his top
priority is reducing taxes,
and that he wants to use the
surplus to create a rainy day
fund “for any shortfalls [re-
sulting from the] elimination
of our income tax.”
His office did not respond
to a request for comment.
Regardless, a compromise
will happen, Linville said.
He expects to see a bill, or
multiple bills, soon that
would establish both the
fund and “guardrails” for
spending it.
“Those conversations are
ongoing,” he added.
Reach reporter Lucas
Manfield at lucasmanfield@
mountainstatespotlight.org
to“
VISIOII, from
page 2
lowest paid in the country,
went on strike statewide over
the rising costs of their
health coverage and for bet-
ter wages. They ended up
with 5% raises, and the gov-
ernor convened a health care
task force.
In 2019, they went on
strike again, over legislation
that would have put public
money toward private
schools and charter schools.
Similar legislation is under
consideration this legislative
session, which began
Wednesday.
And on the first day of the
session Wednesday, Sen. Pa-
tricia Rucker, R-Jefferson
and a leading proponent of
school choice measures, in-
troduced a bill to make work
stoppages illegal. She has
also said she wants to focus
on the teacher shortage this
year.
West Virginia lawmakers
have said school choice leg—
islation will be a priority this
year, meaning they want to
encourage parents to send
their kids to private and char-
ter schools.
They also want to make
way for education savings
accounts in West Virginia,
which would allow parents
to use public money for ex—
penses like private school tu—
ition, charter school tuition,
and home-schooling.
, Teachers unions have ar—
gued that this legislation, by
taking money from public
schools, would hurt schools
already struggling to meet
the needs of students from
lower—income families. Na-
tional data suggests school
choice measures in other
states leave children from
low-income families in the
least-funded schools.
Growing the tax base
with broadband
Besides raising the sales
tax, Justice also proposed
raising severance taxes on
coal, natural gas and oil; in-
creasing the tax on cigarettes
and soda; taxing professional
services; taxing the wealthy
and cutting state spending.
Combined, he said these
changes could make up the
first billion dollars in lost in—
come tax revenue.
But he predicted West Vir-
ginia’s tax base will grow as
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remote workers come to
West Virginia through the
expansion of broadband In—
ternet, which both Democrat
and Republican lawmakers
have said is a priority this
legislative session.
Delegate Daniel Linville,
R-Cabell, is the chairman of
the House Technology and
Infrastructure committee. He
said that after years of state
leaders promising high-
speed Internet access to West
Virginians, he understands
skepticism. He said there’s
reason to believe, however,
that his and others’ more re-
cent work on the problem
should give state residents
reason for hope.
He noted that the West
Virginia Broadband En—
hancement Council released
a statewide broadband avail-
ability map, which is based
on speed tests taken by West
Virginia residents, instead of
provided by companies. He’s
proposing they make a law
that the speeds be reported
by consumers instead of
companies as part of House
Bill 2002, which passed the
House Judiciary Committee
on Thursday.
The map would be up-
dated every year, Linville
said. And it will give law-
makers the information they
need to tailor funding and
policy-making toward areas
of need, he said. The new
Office of Broadband will be
able to tailor its efforts as
well, he said. He also said
that in budget shortfall years,
there was no money to put
toward broadband.
“We’ve actually got the
means to measure success or
failure,” he said.
Linville said he plans ad-
ditional broadband legisla-
tion and agreed with Justice
that remote workers may
move to the state.
“We’ve got a low cost of
living,” he said. “We’ve got
incredible people.”
“West Virginia was the
butt of a lot of bad jokes,
right? Look, name your state.
You’re gonna have some
missteps, right?
“But you have to admit
that we have definitely
——February 18, 202l—Page 5
arms as vases @rIQ/Zéé («‘h'l’e‘k’mfm‘
changed that narrative
around the state of West Vir-
ginia in a positive direction
overall.”
West Virginia’s image
West Virginia’s successes
— including those related to
COVID — were also a com—
mon theme during Justice’s
address. The state has a high
vaccination rate, and has re-
ceived national praise for
that and early efforts to vac-
cinate all nursing home resi-
dents.
“They thought we were
backward or we were poor. I
don’t subscribe to that, and I
know you don’t either,” Jus-
tice said.
But the state is not out of
the woods. The pandemic
has killed more than 2,180
people in West Virginia. Ac-
cording to a survey from the
US. Census Bureau con-
ducted from January 6 to
January 18, 35.7% of sur—
veyed adults in West Virginia
found it somewhat or very
difficult to pay for usual
household expenses during
the pandemic.
Justice didn’t outline any
plans to put additional
money toward public health
emergency response infra—
structure or assist the West
Virginians still struggling to
put food on the table and pay
for their homes and utilities
due to COVID—related finan-
cial loss. The state still has
more than $600 million in
unspent federal CARES Act
money; Justice has said that
money will go toward the
unemployment trust fund.
Democrats have noted that
West Virginians are strug—
gling with poverty due to
COVID-l9, but their plans
are unclear. They have said,
in events preceding the ses—
sion, that they support help
for small businesses and
summer learning and feeding
programs.
This story was originally
published by Mountain State
Spotlight. For more stories
from Mountain State Spot-
light, visit www.mountain
statespotlightorg
Reach reporter Erin Beck
at erinbeck@m0untainstate
spotlightorg
I,
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CoHegesch.
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