The Governor-request bills SB 5511 and HB 1498, which create a statewide broadband office and new funding program, were both heard in committee last week. The proposals establish a Broadband Fund competitive grant and loan program managed by the Public Works Board to help promote expanded broadband access to unserved areas across the state. Eligible applicants for the grant and loan program include local governments, tribes, nonprofits and private companies.
Both the House and Senate capital budgets assume passage of their proposals. Unfortunately, both budgets divert critical infrastructure dollars from the Public Works Trust Fund (PWTF) to support the new broadband grants and loans – leaving fewer resources available to local governments for traditional infrastructure projects.
Article 8 section 5 of the Washington State Constitution bars the state from gifting or loaning credit to private companies and corporations. This means the state is prohibited from using bonds to finance programs that provide private companies state resources. However, by diverting dollars from the PWTF, the Legislature can avoid the constitutional prohibition and provide state resources to private interests to encourage the expansion of high-speed broadband.
AWC supports the Legislature’s intent to expand access to high-speed broadband in unserved areas but opposes the diversion of the PWTF’s limited resources to pay for the state’s broadband efforts. We encourage legislators to find another funding source for this new program.