TPA Urges Decatur City Council To Not Waste Taxpayer Money Expanding Government Broadband

Taxpayers Protection Alliance (TPA) recently released a report and survey results on government owned internet networks (GONs) showing the cost of these failed networks that taxpayers have been paying for, as well as attitudes towards the idea of government spending money on these vanity projects. The survey showed that a majority of respondents don’t want to go into debt for these boondoggles, and that the government can’t do a better job than the private sector of providing quality, affordable internet to consumers. Unfortunately, the trend of these GONs popping up in cities around the country is continuing and this week TPA sent a letter to the Decatur City Council in Illinois urging them against using taxpayer money to expand government broadband.

Read the full letter below:

Decatur City Council
1 Gary K. Anderson Plaza
Decatur, IL 62523

August 11, 2016

Distinguished City Council Members:

As you are aware, on Monday the Decatur City Council will consider a proposal to borrow $700,000 in taxpayer dollars to expand a city-owned broadband network. The Taxpayers Protection Alliance (TPA) strongly urges you to oppose this plan, and any efforts to expand government-owned internet in Decatur.

Your constituents agree with that assessment.

TPA recently released a nationwide poll that found taxpayers strongly oppose government-owned internet networks. Specifically, two-thirds of respondents told us they would not support their local government going into debt so that it could sell high-speed internet access directly to consumers. This finding included a majority of voters across the partisan spectrum and in every region of the country, as well as in every type of community, whether rural or urban, city or suburban.

We also found Americans feel no urgency for the government to get involved in the broadband market.  Three-quarters of respondents felt access to high-speed internet is not a “serious” problem.  Additionally, access to high-speed internet ranked dead last on a list of issues that voters said they thought elected officials should prioritize, with only one percent saying it is important. Another important finding: only 11 percent of respondents said local governments would do a better job of providing internet service than the private sector.

Our findings are in line with a recent survey by the Illinois Telecommunications Association that found that 85 percent of registered voters in Decatur would rather see taxpayer money spent on other priorities, like public safety and city streets, than on a government broadband system. Only eight percent of respondents to that survey said they want Decatur to risk taxpayer money on a government-owned internet network.

With our survey, TPA also released a study outlining some of the worst government broadband failures in the United States. The 12 networks the report discusses cost taxpayers nearly $2 billion. Examples from our report include:

• Provo, Utah’s network, which was sold to a private sector company for $1, but will still cost Provo taxpayers $66.7 million, including interest;

• Memphis Networx, which lost Memphis, Tenn. taxpayers $20.5 million; and

• LUS Fiber in Lafayette, La., which will cost taxpayers about $160 million, or $35 million more than the $125 million initial investment for the network.

Instead of spending limited taxpayer dollars to provide internet service directly to consumers, TPA recommends local policymakers reduce tax burdens and regulations on internet providers.

TPA has been working for years to expose the problems with these government networks. You can access our survey and our “Dirty Dozen” study on our website here, also I would be more than happy to discuss this issue with you by phone or email.

Sincerely,

David Williams
President