The Minnesota State broadband grants are used to match local funds to deploy broadband in underserved and unserved areas in Minnesota. Historically, the State has matched 50 percent; however, that amount has recently increased to 75 percent and there’s a bill that might increase that to 90 percent. That still leaves a large dollar amount to the local community. So, who pays that local match?
- Local providers make up the bulk of the local match. It may have been money they have long planned to invest in an area when the opportunity for a grant emerged. Or a company may have been persuaded by the local community to consider their area through matching funds, enthusiasm demonstrated with local surveys or other opportunities for collaboration. Sometimes they use funds from other federal programs, such as Connect America Fund (CAF) or Alternative Connect America Cost Model (ACAM).
- Local governments, cities, towns, counties, townships, tribal governments have also contributed millions of dollars to local projects. They have used tax levies and held local councils have voted to use other local funds. They have used funds from federal money, such as American Rescue Plan Act (ARPA) and Coronavirus Aid, Relief, and Economic Security Act (CARES).
- Local organizations and businesses have contributed millions of dollars. Organizations such as Iron Range Resources and Rehabilitation Board (IRRRB), Sourcewell, economic development agencies, partnering technology companies and local companies who needed better broadband has contributed to local match.
Untangling the exact source of match has been arduous because the specificity of breakdown seems to have changed over the years. The numbers below are not complete because we are waiting on details from some of the earliest grants, but they demonstrate a public-private partnership that is part of what makes the Minnesota Broadband grant program so successful. It also gives us a roadmap on how to continue successfully down a path of ubiquitous broadband for all Minnesotans. Below is an estimate of local match break down so far. (I am tracking down details on 25 of about 320 funded grant projects.)
- Local Providers $415 million
- Local Governments $58 million
- Local Organizations $7 million