There Are Kentuckians Who Still Don’t Have Broadband Because the Former Governor Chose an Investment Bank Over Experts

Former Gov Steve Beshear’s (D-KY) administration repeatedly ignored expert advice before embarking on KentuckyWired, the massively over budget statewide broadband project that will leave rural residents waiting months, if not years, for the improved internet access they were promised, a new state audit says. The report, released Dec 16 by state Auditor Mike Harmon, says consultants and outside lawyers warned KY officials more than four years ago that negotiations with the Australian investment bank Macquarie Capital could lead to a higher price tag and fewer protections for the state.

KentuckyWired, the state’s ambitious plan for providing enhanced internet connectivity to rural residents, has been plagued by delays and cost overruns since the project began. It is now two years behind schedule and could cost taxpayers $1.5 billion over the next 30 years, according to the state’s auditor. The auditor’s report suggested such problems could have been mitigated had state officials heeded expert warnings from July 2014 to Sept 2015, the period between when they first sought bids for the project and when they reached a final agreement with Macquarie. It also confirms a joint Courier Journal-ProPublica investigation that revealed a flawed bidding process and projections that oversold the amount of federal funds available for the project. Jim Baller, a telecommunications attorney, was one of the experts who told the state it should be more cautious in negotiations with Macquarie, a company known for organizing big infrastructure projects around the globe.