Budget Office Pegs Telecom Bill Cost At $5.2 Billion

The Senate telecommunications bill would increase U.S. government spending by $5.2 billion from 2007 to 2016, the Congressional Budget Office estimates in a just-released report. During that period, however, U.S. Treasury revenue would grow by $5 billion, the report predicts. The bulk of the costs would result from changes to the universal service fund that subsidizes telecom offerings in rural and impoverished areas. CBO says that nearly $4.5 million would be spent over nine years to expand the program to subsidize high-speed Internet access. But the report also says USF revenue collection would grow by roughly the same amount. The CBO report poses yet another hurdle to Senate consideration of the bill because it shows that the measure would add to the budget deficit. That makes the measure subject to a point of order that would require 60 votes to overcome. CBO estimates that the Senate version of the House-passed bill, H.R. 5252, could raise costs for state and local governments by up to $400 million per year in 2008 and 2009. Their costs would be at least $150 million per year during that period. Costs for states and localities would decrease after 2009 but could exceed $100 million per year through 2011, the office says. CBO said costs also would rise due to provisions to limit franchise fees on cable providers, to permanently extend the ban on certain Internet taxes, and to impose a three-year moratorium on state and local taxes applied to wireless telephone service.