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Alabama, New Mexico Voters Eye Constitutional Amendments for Broadband Funding

Two states will allow midterm voters to chime in on state funds for broadband deployment.

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Photo of Alabama Gov. Kay Ivey

Alabama and New Mexico voters will soon be given the midterm option of changing their state constitutions to help boost broadband funding and deployment, albeit in notably different ways.

In Alabama, voters will head to the polls on November 8th to vote on a Broadband Internet Infrastructure Funding Amendment that would amend the state’s constitution “to allow local governments to use funding provided for broadband internet infrastructure under the American Rescue Plan Act and award such funds to public or private entities.”

County leaders have spent much of this year warning that Section 94 of the Alabama Constitution bans the state from granting public money or “things of value” to local governments for public and private use. That’s a significant problem when it comes to the $276 million in ARPA funds Alabama Governor Kay Ivey earmarked for broadband expansion last March.

Programs such as the USDA’s ReConnect and the FCC’s Rural Digital Opportunity Fund haven’t run afoul of the Alabama Constitution because they both involve the federal government directly doling out funds for broadband expansion. But ARPA funding allows local municipalities to distribute a portion of state-allocated funds.

“The legislature shall not have power to authorize any county, city, town, or other subdivision of this state to lend its credit, or to grant public money or thing of value in aid of, or to any individual, association, or corporation whatsoever, or to become a stockholder in any such corporation, association, or company, by issuing bonds or otherwise,” the Constitution reads.

Modifying the state’s constitution requires a three-fifths vote by the Alabama state legislature and a public vote. If approved on November 8, the Alabama constitution will be amended to read:

“The state, a county, or a municipality is authorized to grant federal award funds or any other source of funding designated for broadband infrastructure by state law to any public or private entity for the purpose of providing or expanding broadband infrastructure. The granting of funds by a county or a municipality to a private entity pursuant to this section must be approved at a public meeting held by the appropriate county or municipality.”

Alabama’s $276 million in ARPA funding for broadband is being administered by the Alabama Department of Economic and Community Affairs. The state is also expected to get upwards of $2 billion dollars through the Infrastructure Investment and Jobs Act.

Amending the state constitution to allow for county and city governments to use public funds for the expansion of high-speed Internet service has the backing of the Alabama League of Municipalities and the Association of County Commissions of Alabama.

Another indication the measure is likely to pass at the ballot box: the bill to put the amendment on the ballot, sponsored by Republican State Rep. Randall Sheddpassed both houses without a single dissenting vote.

New Mexico

New Mexico voters are also being asked to modify the state Constitution to ensure the easy flow of broadband funding. A 1900s era portion of Article IX of New Mexico’s constitution restricts “lending, pledging credit, or donating to any person, association, or public or private corporation.”

The proposal, which was approved by the New Mexico state legislature last February, would add an exception to the state’s anti-donation clause to allow the state legislature to appropriate state funds through a majority vote in each chamber for infrastructure that provides essential services such as water, sewer, electricity, and broadband.

If passed, the New Mexico Constitution would be amended to read:

“Nothing in this section prohibits the state from expending state funds or resources for the purpose of providing essential services primarily for residential purposes if the assistance is granted pursuant to general implementing legislation approved by a majority vote of those elected to each house of the legislature. The implementing legislation shall provide for accessibility to essential services primarily for residential purposes and include safeguards to protect public money and other public resources used for the purposes authorized in this subsection. As used in this subsection, ‘essential services’ means infrastructure that allows internet, energy, water, wastewater or other similar services as provided by law.”

FCC data indicates that 42 percent of New Mexico residents still can’t access broadband and the FCC’s already dated definition of 25 Megabits per second downstream, 3 Mbps upstream. The dated provision in the state constitution has helped contribute, effectively hamstringing the subsidization of private sector rural broadband deployments.

“I’m confident that the voters will support this important measure to improve access to essential infrastructure for every New Mexican,” New Mexico state Rep. Christine Chandler, D-Los Alamos,  told media outlets earlier this year. “Every family should have access to clean water, reliable electricity and broadband internet.”

Earlier this month, Chandler co-authored an op-ed published in the Albuquerque Journal with State Rep. Anthony Allison, that urges voters to pass the amendment to “give our state the ability to better grow, attract and retain job-creating businesses, and increase the power of small- and home-based businesses to compete in local, national, and even international, markets.”

The editorial board of the Albuquerque Journal concurred, reminding voters that it was the state’s “anti-donation clause prohibitions” that prevented New Mexico from being able “to leverage 2009 federal broadband money.”

Authored by Karl Bode, this article originally appeared on the Institute for Local Self Reliance’s Community Broadband Broadband Networks Project on October 24, 2022, and is reprinted with permission.

Funding

Treasury Department and Local Officials Tout American Rescue Plan Funds

Federal funding program prepares communities for economic turmoil.

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Photo of Jacob Leibenluft of the U.S. Department of the Treasury

WASHINGTON, March 23, 2023 – American Rescue Plan Act funds sets the United States ahead in economic resiliency, said experts at a Brookings Institution event Thursday. 

When ARPA was passed in March of 2021, the United States Department of the Treasury was tasked with ensuring that funds would be used to build sustainable programs past the 2026 expenditure deadline as well as programs that would build capacity for future government programs, said Jacob Leibenluft of the Treasury.  

At the onset of the COVID-19 pandemic, states did not have the systems in place to reach people in need of help, said Leibenluft. ARPA funds help communities invest in a strong system to provide support to community members, which sets the United States ahead of where it would have been otherwise, he said, claiming that the funds will help the country weather upcoming economic turmoil. 

To take advantage of this opportunity, Leibenluft suggested that localities develop and share best practices. The most effective way to use ARPA funds is to develop the “plumbing” that connects citizens to government programs which localities can then maintain on their own budgets, he said. 

“There are certain things that are just not sustainable in the absence of ARPA funds,” he continued, “what we have built is really a demonstration of programs that can be sustained through a combination of local, state and federal funds.” 

Local governments need to view ARPA as one-time spending, added Tishara Jones, mayor of Saint Louis, Missouri. Saint Louis did not develop any ARPA-reliant programs that would extend beyond the 2026 expenditure deadline. Instead, the city is finding revenue in its existing budget for supporting new programs on its own. 

Even so, state officials suggest that the Treasury’s 2026 expenditure deadline is too soon, claiming that not all funds necessary for broadband infrastructure upgrades will be received by that time.  

The American Rescue Plan gave $1.9 trillion for direct financial assistance, education support, health programs, transportation, and state and local fiscal recovery. An estimated 10% of funds are being used to build infrastructure, including broadband deployment, according to Brookings. The program’s allocation phase is set to be complete by the end of 2024.  

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Broadband Mapping & Data

FCC Added Just Over 1 Million Net New Locations in Broadband Map Fabric Slated For Spring Release: Chairwoman

Chairwoman Jessica Rosenworcel said the second version of map fabric ‘largely completed.’

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WASHINGTON, March 23, 2023 – The head of the Federal Communications Commission said Thursday that the commission added just over one million net new broadband serviceable locations after processing challenges and improving data models in its second round of data collection that ended March 1.

In a mapping update blog post, chairwoman Jessica Rosenworcel noted that the net additions to the map – where fixed broadband could be installed – came after it added 2.96 million new locations and removed 1.92 million locations from the first version of the fabric released in November.

The chairwoman also said the second version of the fabric, which underpins the broadband map, is “largely completed” and is slated for a release later this spring. The map will be used by the National Telecommunications and Information Administration to spread among the states by June 30 the $42.5 billion from its Broadband Equity, Access and Deployment program.

“In the past four months, our mapping team has processed challenges to availability data for over 4 million locations,” Rosenworcel said in the post. “In other words, on average, we are addressing availability challenges to tens of thousands of locations every single day. Every two weeks, our public map is updated to reflect all availability challenges that have been resolved. In other words, the system is working.”

The chairwoman noted that the one-million-location difference suggests that the net adjustment from the last version of less than one percent in the number of serviceable locations “says that, on balance, the November pre-production draft of the National Broadband Map painted a helpful picture of where high-speed Internet service could be available.”

Previously, the chairwoman said challenges that sought corrections to the data corresponded to less than one percent of the total number of locations identified.

Rosenworcel also noted Thursday that important corrections and additions to the data were made, including “data refreshes to more sophisticated tools” that helped remove structures like garages and sheds. The most significant additions were in Alaska, U.S. territories and tribal lands, she said.

The challenge process led to nearly 122,000 new location additions, she noted, but also added that the majority of location adds were due to the updates and dataset model refinements by the agency’s contractor CostQuest.

“While over time we expect future versions of the Fabric to require fewer refinements,” Rosenworcel added, “these ongoing efforts to improve the Fabric outside of the challenge process will continue and will remain an important tool for the improvement of the National Broadband Map.”

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Spectrum

Industry Dissent on Whether Spectrum Sharing is Sustainable

Experts disagree on the capabilities of spectrum sharing, particularly the CBRM model.

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Photo of Colleen King of Charter Communications, John Hunter of T-Mobile, and Matthew Hussey of Ericsson (left to right)

WASHINGTON, March 22, 2023 – Industry leaders disagreed on the capabilities of spectrum sharing and its future in the United States at a Federal Communications Bar Association event Wednesday. 

Dynamic spectrum sharing – a technology that allows for 4G, LTE, and 5G wireless to be used in the same frequency bands – is essential to a successful national spectrum strategy, said Jennifer McCarthy of Federated Wireless.  

Establishing a combination of access points for one frequency band can open its availability for all prospective users, she continued, touting the success of the Citizens Broadband Radio Service established by the Federal Communications Commission in 2012. 

CBRS is the spectrum in the 3.5 GHz to 3.7 GHz band which is shared through a three-tiered framework. Access to the spectrum is managed by a dynamic spectrum access system where incumbent users have protected access, priority access users enter through competitive auction, and general authorized access is given to a broad pool of users when not in use by others.  

Representative of T-Mobile, John Hunter, disagreed, claiming that dynamic spectrum sharing means there is less power available for technologies, particularly on higher frequencies that don’t propagate very far despite power disparities. As such, deploying the CBRS framework at scale across the country is not cost-feasible, he said. 

We should not conclude to share just for the sake of sharing, he said, particularly because it will decrease utility of the band so much that it will decline quality of networks down the line. “In many cases, sharing just outright won’t work,” said Hunter.  

Colleen King, vice president of regulatory affairs at Charter Communications, pushed against the argument that dynamic sharing’s lower power will stop providers from providing great service, claiming that it instead allows for more carriers to provide great service. In fact, the CBRS auction had 228 winning bids, 10 times the amount of other spectrum auctions, she said. 

The FCC’s Communications Marketplace Report showed that in one market where Verizon is using the CBRS framework, the company is providing “much faster speeds” than its other markets, King cited. Charter will use the CBRS system for its spectrum uses, she said. 

Panelists nevertheless agreed on the importance of maintaining US leadership in the spectrum space by developing a national spectrum strategy to address sharing issues. 

The panel followed considerable debate over spectrum allocation, sharing, and expansion. Earlier this week, industry leaders suggested that the allocation process be updated in preparation for future disputes. Additionally, debate continues over whether 5G operations can be shared on the 12 GHz spectrum with satellite service providers.  

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