State Board Members Urge Universal Service Fund Reform

In a letter to the Federal Communications Commission, the state representatives on the Federal-State Joint Board on Universal Service expressed frustration with their FCC colleagues in coming to a consensus on how to reform Universal service Fund contributions. In 2014, the FCC referred the issue to the Joint Board which is chaired by FCC Commissioner Michael O'Reilly. The state members have not gotten responses on their proposed recommendations nor have they been able to met regularily with FCC commissioners on the Joint Board. The state members also filed their recommendation that the FCC revise the existing contribution mechanism for federal universal service programs. "The State Members of the Joint Board find that the Commission has the authority, and that it is in the public interest, to expand the contribution base to include a broader class of services that touch the public communications network, including Broadband Internet Access Service (BIAS)." The recommendation is for a connections-based assessment on residential services and an expanded revenues-based assessment on business services. They also recommend that the FCC establish a firm budget for each of the four universal service fund programs with those budgets not growing any more than the Consumer Price Index for any given year. And, finally, they recommend the FCC take specific steps to assure the continued viability of state universal service mechanisms promoted by Congress in the 1996 Act.