11:50 a.m. – 12:00 p.m. Report out by Economic Development and Digital Inclusion Subgroup (Chair: Bernadine Joselyn; Members: Dale Cook and Micah Myers)
12:00 p.m. – 12:10 p.m. Report out by Minnesota Model Subgroup (Chair: Brian Krambeer; Members: Steve Fenske, Shannon Heim, Theresa Sunde, Paul Weirtz)
12:10 p.m. – 12:20 p.m. Report out by Barriers and Technology Subgroup (Co-Chairs: Marc Johnson, Dave Wolf; Members: Nolan Cauthen, Steve Giorgi, Jim Weikum)
12:20 p.m. – 12:30 p.m. Public Comment, Other Business, June Meeting Plans, Wrap-up
Friday, May 01, 2020 , 9:45 AM Ways and Means Chair: Rep. Lyndon Carlson Location: Remote hearing Agenda:
This meeting is scheduled until 12:45 if necessary.
This remote hearing is taking place under Rule 10.01, which you may view here: https://www.house.leg.state.mn.us/cco/rules/permrule/1001.htm
I. HF 3029 (Ecklund) Broadband development grant program annual statutory appropriation provided, and money appropriated (pending referral)
II. HF 1507 (Stephenson) Minnesota investment fund grant program limits modified, job training grant program modified, and money appropriated
III. HF 168 (Schultz) Temporary PCA rate increase during COVID-19 emergency (pending referral)
IV. HF 4541 (Hausman) COVID-19; eviction and mortgage foreclosure protection and emergency housing assistance provided during a public health emergency, report required, penalties for false statements provided, and money appropriated
Other bills may be added
Meeting documents will be posted on the Ways and Means website at https://www.house.leg.state.mn.us/Committees/Home/91014
Right about the same time the MN Broadband Task Force met today, the Senate Committee on Finance also met to discuss Senator Westrom’s SF4494 bill: COVID-19 telemedicine equipment grant program establishment; distance learning broadband access grant program establishment; appropriations.
On the highest level – the bill intends to provide funding for broadband via:
$8 million for a technology reimbursement grant program for schools
$2 million for telemedicine equipment reimbursement program
$10 million to the Border-to-Border Broadband Grant Program
The discussion today related to the latest amendment. It was a delete all amendment, which shifted source for the $10 million to broadband grants to federal funding. (Paid in advance by MN, and paid back when federal funds come in.) Also there’s a focus on unserved areas over underserved to receive funding. They also removed a first-come, first-served approach to applications.
The irony of the meeting happened when Senator Westrom’s broadband connection kept cutting out. He turned off his video, which can be a good fix for participating in online conversation, Unfortunately regulation requires that the speaker be seen as well as heard during these State policy discussions.
Q: with changes on school-related access, which school districts will be impacted?
A: the hope is to reach unserved areas.
The intention is to allow for the schools to come up with quick fixes but that the grants remain for long-term solutions.
There is a lot of discussion on unserved vs underserved which morphed into a discussion on affordability for households especially since affordability is a concern that straddles urban and rural counties. Some want affordability to be as important as accessibility – especially when it comes to providing access to students. Some think the Office of Broadband Development focuses strictly on deployment.
There was some recognition that more funding would solve the debate between accessible and affordable.
There was some discussion on the importance of tracking and allowing “mobile wireless” with the grants.
Today the MN House Committee Greater Minnesota Jobs and Economic Development Finance Division, heard from Representative Ecklund on HF 3029 – which includes broadband development grant program annual statutory appropriation provided, and money appropriated. Chair Pelowski’s (DE 1 amendment to HF 3029 was accepted. After some discussion the bill was moved to Ways & Means. The Senate will discuss a similar bill on Wednesday (April 29) in Finance.
There was concern about State budgeting issues given the impact of COVID19. There was concern about the speed on impact on rural communities given in the impact of COVID19. There was concern about equitable access to funds for areas that need it There was concern about increased state match for grants from 50 to 55 percent.
A hard truth that Brent Christensen (from MN Telecom Alliance) shared – is that even if they do appropriate this additional funds, it doesn’t that mean that the work will be done (that MN will have ubiquitous broadband) but it means it will be done quicker.” Angie Dickison (from Office of Broadband Development) went through the math and if they do add $10 million onto the grant program that will only help serve 2 percent of the 163,000 homes and businesses that need access and that’s only to the speed goals of 2022 – or 25 Mbps down and 3 Mbps up.
The Pew Research report on How State are Expanding Broadband Access has garnered a lot of attention lately for the report and the states they pull out as leaders, including Minnesota. I haven’t tracked all mentions of the report but Fast Company took a closer look at the MN Broadband grants…
So far, the state has invested $85.2 million in public funding—2019’s recipients include rural telephone companies and electric utilities, tribal governments as well as big-name telcos like CenturyLink and Charter—to leverage another $110.6 million in spending to get 34,000-plus households and 5,200 businesses online.
As a result, the report says, the share of Minnesota households with 25/3 Mbps broadband has gone from 86% in 2015 to 91%. And the share with 100/20 Mbps access has almost doubled, zooming from 39% in 2015 to 74%.
The report doesn’t address how many of those households got online without the help of those subsidies, but notes that the state allows internet providers to challenge any of the grants “by demonstrating that they provide service or have begun construction on broadband infrastructure at speeds equal to or greater than the proposed project.”
The catch: Before they do that, they have to provide a detailed map of their service area, making the state a little smarter for the next round of grants.
Yesterday the Greater Minnesota Jobs and Economic Development Finance Division met to discussion HF3029. Unfortunately I was at another meeting and could attend but there is an audio archive. (Download Mp3)
Here are notes from the meeting:
HF3029 (Ecklund) – Broadband development grant program annual statutory appropriation provided, and money appropriated.
The meeting started with Rep Ecklund introducing the bill explain that the extra funds would help Minnesota get on track to making the Minnesota state speed goals by 2022.
They talked about this money being ongoing funds – not a one-time appropriation, which is different from last year. Representatives wondered how long it
They hear from:
Angie Dickison and Diane Wells spoke and their presentation was similar to what they talked about at an earlier Senate Committee. There were questions/comments:
How are the grants dispersed in terms of unserved/underserved areas?
The grants can go to underserves areas. There are a number of criteria that go into scoring the applications.
How long will it take to get to ubiquitous coverage?
The Task Force is looking at that issue. Their last report lead to the proposed funding.
How will you serve the very sparse areas and economically distressed areas?
We will likely have to look at less than 50 percent match requirement.
The phone companies decide on the networks. They won’t pay for a network that won’t make money. If we help some companies and not others the others will be mad. We need a national roll out – like Nebraska.
Can wireless help?
Yes. We are agnostic to technology type so long as the technology will scale to 100/100 speeds required.
How big a problem is gopher chewing on fiber?
It’s an issue.
Bill Eckles, BEVCOMM
Working on getting all customers on FTTH in the next 9 years. They have received 12 grants for projects totally $9.5 million; grants have covered just less than half of that cost. On criticism of the grants is that it has been a year to year grant, which makes it hard to plan. We won’t need help forever but we need help to reach some areas.
Terry Nelson, Woodstock Communications
Have received several grants most for fiber but one for a fiber-wireless hybrid. One grant application this year was denied because of the challenge project.
Can consumers afford Gig access?
Most gig customers are businesses.
Do we use taxpayer money to pay for business speeds?
Yes.
Vince Robinson, Lincoln County Development Enterprises & MN Broadband Coalition
Representing more than 90 organizations all of walks of life. They support $30 million ongoing for broadband.
Are we leaving places orphaned that will be very expensive to serve?
Yes. The program isn’t perfect but it’s very good. Right now we have a great demand for the program but there are areas that will be extremely difficult to serve and we may need to look at less than 50 percent match.
Will wireless help us reach areas?
We are seeing technologies improve maybe in the future they will be able to help. Right now line of sight can be a problem in using wireless in some areas.
Mark Thell, Farmer’s Union in Carlton County
We have CenturyLink. Our local network helps us use video to see what’s happening on parts of the farm but right now we don’t have sufficient broadband to do precision ag.
Dan Larson, MN Rural Counties
His presentation was similar to what he talked about at an earlier Senate Committee. If we want to really reach the broadband goal, we should move the grants funds into the base budget of the Office of Broadband Development.
Brent Christensen, MTA
His presentation was similar to what he talked about at an earlier Senate Committee. Thank for passing Telecommuter Forward. There are 20 communities that have applied for Telecommuter Forward support.
We’re going to need to figure out whether this is for base funding.
There is an opening at the MN Office of Broadband Development. Great job for the right person…
The purpose of this position is to develop, promote, implement, provide technical assistance for, evaluate and report on state and/or federally funded financing programs of the Office of Broadband Development. The Office develops and administers programs designed to achieve high quality broadband access for all Minnesotans and to support and promote the skills necessary to adopt and use broadband tools for economic, educational, health, and institutional benefits. Programs administered include the following:
1) Border-to-Border Infrastructure Grant program which provides state financing for DEED approved broadband infrastructure expansion projects;
2) Supporting and maximizing Minnesota entities participation in federally-funded broadband infrastructure programs.
3) Digital literacy, broadband adoption and use programs.
Today the MN Senate Committee on Ag, Rural Development, and Housing Finance heard about broadband. The Committee heard from Angie Dickison and Diane Wells from the Office of Broadband Development on the details of the Office, the grants and progress toward the state broadband speeds for 2022 and 2026. Then Senator Draheim introduced HF3049, recommending one time $30 million additional funds for the broadband grant program.
Finally the Committee heard from Jane Leonard, Dan Larson and Brent Christensen in supportive of the bill. NO one voices any concerns and the bill way laid over for possible conclusion in the omnibus.
The video also include Senator Westrom on the Rural Finance Authority.
Broadband Overview from Minnesota Office of Broadband Development
Here is the 4 element approach to the #MNBroadband model:
Statutory goals
Data (mapping program)
Broadband Office & Task Force
Grants
The Office of Development does more than grants. They coordinate and number of efforts to expand broadband.
Broadband mapping: We have snapshots of where we stand today. We can see improvement toward the 2022 speed goals. We can also see counties that need more progress – where less than 50 percent of households have access to 25/3. We also see the maps for 2026 – we have some counties that are there, more are not.
496 citi es where 25 percent of more have fiber.
62 cities with more than 50 percent lacking access to 25/ 3
How does federal funding impact state funding? We have a map of these areas. We have had some projects that have combined funds to bring higher speeds to those federal funded areas.
Senator Draheim: introduces: S.F. 3049: Broadband development grant program annual statutory appropriation establishment.
Asking for additional resources ($30 million) from general fund to supplement the #mnbroadbnad grant. Businesses, farmers, telehealth and online entertainment need better broadband to reach the 9 percent unserved areas.
Jane Leonard speaking for MN Broadband Coalition:
Thanks to everyone for their interest and attention. I’ve worked with broadband since out aim for a 56k in each community. More recently have worked with the Office of Broadband Development. Investment in broadband will touch every sector. IN 2018, the broadband Task Force recommended $70M per biennium – this increase of $30M will get us there.
Dan Larson for Rural Counties:
Here to support SF3049 and thank the Legislature for supporting it. Broadband is essential for rural communities
Brent Christensen MN Telecom Alliance:
If this bill passes and is signed into law, it does not mean we’re done but it gets us closer. We won’t need support forever, but we will need it for a while. The last people getting broadband will be the most expensive. We have 5 years of evidence indicating that this program works.
The full notes and video are below. I think a highlight from the meet was the presentation from the Minnesota Broadband Coalition. They have asked the Task Force to send a letter to the Legislature supporting their recommendation for $30 million from the supplemental budget for more grants.
People around the US, well people who care about broadband, are talking about the Minnesota Model – speed goals, State support and a grant program that works as well as the Border to Border grants. The Office of Broadband Development (OBD) has been instrumental at making that work.
So we’re a little sad for us, but happy for the director, Danna Mackenzie to see that she is taking a break with an extended leave of absence. She has worked long, hard hours perfecting the Minnesota model.
She’s leaving the work with a solid team of Diane Wells and Cathy Clucas. Both are experts in the field and Diane really been with the OBD longer than it has even existed. (She had worked on telecom for the state for a long time.)
They have recently been joined by Angie Dickison, formerly of the Wisconsin broadband office and formerly formerly a Blandin Broadband Community leader.
Final note from the OBD, a reminder about the upcoming grant deadlines – The first of two grant rounds to distribute those funds has opened and the applications are due September 13th.
The deadline for the applications is 4 p.m., on Friday, September 13.
Application proposals must be mailed or delivered to:
Office of Broadband Development MN Department of Employment and Economic Development
First National Bank Building
332 Minnesota Street – Suite E200
St. Paul, MN 55101-1351
Application submittals must include three full sets of paper copies, and one additional electronic set in Microsoft Word format on a USB drive. They must be received by the deadline to be considered for funding.
Contact Information
For questions regarding this application process, please contact OBD Staff at 651-259-7610 or deed.broadband@state.mn.us
The MN State broadband speed goals are 25 Mbps down and 3 Mbps up by 2002 and 100 Mbps down and 20 Mbps by 2026. The 2022 goal ought to be a benchmark toward the 2026 goals, but having looked at these number for a few years now I can see that while some counties take that to heart, others are in danger of plateauing with 25/3.
I look at this info as a call to help for two groups of counties. First there are the counties that rank near the bottom. They need to expand and upgrade broadband. Second, are the counties that have been hovering around the same percent covered (where that’s not 99+ percent) and are losing ground in the ranking. The exception would be if those counties are seeing a steep growth in the 100/20 percentage and ranking – which might indicate a slower but more future-forward plan.
For the most part the rankings were similar from 2018 to 2019. A few folks moved up or down a few places – based as much as growth round them as lack/burst of local growth. However, it’s probably worth looking at how your county stands compared to last year and why. Are you on the right trajectory to meet the 2022 and 2026 goals?
The one outlier was Brown County. They went from 96 percentage covered in 2018 to 84 percent coverage in 2019. It sounds like that is due to a provider supplying the Office of Broadband with more granular data that resulted in better data and reduced coverage. Few counties saw the decrease in coverage for the others that did, the reason is probably similar but in what I’d call a margin of error.
The best way to use this data is to download the spreadsheet. I am going to post an abridged version below (with fewer columns).
I am going to do three separate posts on the data because I think it’s easier to take them on in smaller bites. This post I want to share the fact that the info is there. You can access the maps, data or a spreadsheet that include the following info for each county:
Household density
Number of households
Percent of households with wireline access to 25/3
Percent of households with wireline access to 100/20
Percent of households with wireline access to Gig up and down
I’ll paste an abridged portion of the table – and I’ll focus on the Gig access. I’m working on posts that focus on 25/3 and 100/20 that will rank access and compare speeds and ranking to 2018. I will use this data to do the annual County Profiles – but with 87 counties that will take a while. (Download full spreadsheet for best access to data; I know the layout may be wonky here.)
Rep. Paul Marquart of Dilworth, who chairs the House Taxes Committee recognizes the positive impact of the MN Office of Broadband Development when talking about recent $40 million for grants from Legislators. As posted in DL-Online…
The Legislature also approved $40 million for rural broadband expansion. “The Minnesota Broadband Office has really done a good job,” working with broadband providers with a minimum of red tape, Marquart said.
