Speaking of broadband, the pandemic has highlighted
the necessity of high-speed internet for education, work, and communications. The
Energy & Technology Committee has been working on a major bill to
accelerate broadband deployment to every part of the state. Building on the
Communication Union District (CUD) model that was authorized in 2015 and enhanced
last year, availability to planning grants and low-cost loans will be provided
to CUDs to build fiber networks throughout Vermont. CUDs are organized by towns
that want to build fiber to the areas where for-profit internet service
providers find it unprofitable to reach.
Most for-profit companies build their infrastructure along the main
arteries with a higher residential density. Fiber-optic lines cost about
$33,000 per mile to build. The more subscribers within that mile, the lower the
cost per subscriber.
Local telecommunications carriers like WCVT or
Consolidated Communications also provide internet service. The US Department of
Agriculture recently accepted bids from traditional carriers to extend
broadband in rural areas under the Rural Digital Opportunities Fund (RDOF).
With the objective of getting service to every Vermonter as quickly as
possible, we are encouraging CUDs and telecom providers to work with each other
to avoid duplication of effort. The rate at which high-speed broadband can be
built depends not only on funding but on the availability of skilled line
workers and of the required materials, both of which are in short supply. Our
bill will also include funding for workforce training in partnership with
Vermont Technical College. Even with this support, broadband to the “last mile”
will take years to accomplish. We will continue to work on the details of the
bill over the next few weeks.
There's good news on the 9.5 cent education property
tax rate increase that created a stir in December. Improved non-property tax
revenues in the Education Fund and input from school districts have resulted in
a reduction to roughly a one cent increase. This may change as more information
about actual budgets becomes available, but it is not expected to change
dramatically.
Also on the education front, the sustainability of the
pension funds for teachers and state employees has become a top priority with
the release of a recommendation from State Treasurer Beth Pearce which would
increase contributions and decrease benefits.
The source of the underfunded pension fund problem was a decision by the
legislature in the 1990s to underfund the system based on overly optimistic
assumptions about investment returns. The unfunded liability is $1.5B at
present and is expected to grow another $600M if remediation steps are not
taken. The legislature is studying the
report and seeking alternatives by working with all parties to assure
Vermonters that they will have their retirement benefit while also curtailing
the unfunded liability. Pension contracts are an obligation that should not be
set aside. Teachers and state employees should not be penalized for the
fiduciary mistakes made by government. We must solve this dilemma fairly.
