CTIA, NENA Say More States Taking Money Set Aside for E-911 Deployment
CTIA and National Emergency Number Association officials warned that a growing number of states are redirecting E-911 funds, especially in light of the slumping economy and budget problems. In most of the states where the funds are being raided, many counties still don’t have E911 Phase II coverage, or in some cases even basic Phase I coverage. The FCC is scheduled to take on the issue in a report it will make to Congress in July as a requirement of NET 911 Improvement Act.
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CTIA and NENA sent a letter last week to Wisconsin Governor Jim Doyle, a Democrat, as that state contemplates taking $20 million from the fund to help offset a $1.6 billion budget shortfall (CD May 29 p8). Doyle proposed a 75-cent monthly 911 surcharge on all phone lines, including cellphones and VoIP lines, with the funds to be redirected to help balance the state’s budget.
“It’s becoming a national epidemic with several states looking at the E-911 funds that all of them have as an ATM,” said Dane Snowden, CTIA vice president of external/state affairs. “You are collecting money for one purpose, E911, and using it for other purposes. When you're collecting millions of dollars for the purposes of E911 and then you're using it for other things, the consumer needs to know.”
Wisconsin isn’t the only state redirecting the funds, according to data collected by CTIA. Hawaii has taken $16 million from its fund, Georgia $7 million, Delaware $4 million, Oregon $3.1 million and Tennessee $2 million. Some of them have not deployed Phase II service across their counties. In Georgia, based on a map from NENA, 10 counties have basic 911 or no 911. Only about half the counties have complete Phase II deployment. In Oregon, about half the counties have not completed Phase II deployment.
Public safety officials said even after a state completes Phase II deployment, the 911 funds pay for continuing costs. In some states, the funds flow back to carriers to help defray some of their costs in complying with E-911 mandates. Even when a system is in place, states have continuing costs for new hardware and software and basic maintenance to keep their systems up to date. One official compared these expenses to the costs of maintaining a new car after a driver takes delivery.
“Raids have occurred in the past and they still occur today,” said NENA CEO Brian Fontes. “It’s an unfortunate situation because those who are being harmed are those who are making 911 calls … They are taking away from citizens a service that they depend on in their immediate hour of need.”
When funds are diverted, it raises truth-in-billing issues, since subscribers pay an E-911 line charge on their monthly phone bills, Fontes said. “I realize states are having difficult times but, this is a fund that has been dedicated to a specific purpose.”
Scott Mackey, former chief economist at the National Conference of State Legislatures, predicted the raids will continue, especially if the economy doesn’t rebound in the coming months. “States have balanced budget requirements and when they get into crunch time they will frequently will look throughout state government to say where are there trusts funds and pots of money that we can use on an emergency basis to bail us out of a mess,” he said. “When states are in fiscal conditions like they are today, and in past recessions, you typically get a handful of states that do this.”
Mackey said subscribers often don’t understand that the fees they pay for 911 upgrades are being used elsewhere. “The problem is that wireless consumers, when they pay these fees, it’s with the understanding that the money is being used for these 911 systems,” he said. “When you break that compact it’s unfair to consumers and it’s unfair to the industry.”
The officials interviewed told us the FCC could play a critical role in calling attention to the problems created when states redirect the funds. Commission staff members are gathering information for the July report, sources said.
“We're also trying to get consumers aware of this issue,” Snowden said. “In addition, we're working with legislatures and governors across the country to make sure they understand the critical decision that they are making when they take this money away.”