FCC Report Exposes Questionable 9-1-1 Expenditures

Besides the occasional goofball complaining about a non-delivered pizza or somebody asking how to work his iPhone, most of the time when somebody calls 9-1-1 they are experiencing a dire emergency and need the system to work quickly and efficiently.  While some telecommunications taxes and fees may be controversial, mobile (and landline) customers understand the need for an efficient 9-1-1 system and are willing to pay for that system.  The number of 9-1-1 calls and the amount collected is staggering.  According to CTIA-The Wireless Association®, “Every day, 396,000 9-1-1 calls are made on wireless devices. With almost 30 percent of wireless-only Americans, mobile consumers pay more than $2 billion a year for their states’ 9-1-1 funds to ensure our nation’s first responders are properly equipped to handle wireless distress calls.”  A report earlier this month by the Federal Communications Commission (FCC) shows that not all money being collected from the fund is being used for the proper purposes.

In 2008, a provision was added to The Wireless Communications and Public Safety Act of 1999 to ensure transparency in the expenditure of funds collected for 9-1-1 emergency services.  “To ensure efficiency, transparency, and accountability in the collection and expenditure of a fee or charge for the support or implementation of 9-1-1 or enhanced 9-1-1 services, the Commission shall submit a report within 1 year after the date of enactment of the New and Emerging Technologies 911 Improvement Act of 2008, and annually thereafter, to the Committee on Commerce, Science and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives detailing the status in each State of the collection and distribution of such fees or charges, and including findings on the amount of revenues obligated or expended by each State or political subdivision thereof for any purpose other than the purpose for which any such fees or charges are specified.”

While a majority of the states have been using the funds properly, there are seven states that do not use the funds for 9-1-1 purposes.  Three of the seven states use the money for other emergency purposes and four states (Arizona, Illinois, Oregon, and Rhode Island) use the funds to “to assist in closing the state’s general fund.”

The most troubling information comes from the state of Illinois that, according to the FCC, “Illinois reports that it borrowed $6,665,500 from its Wireless Carrier Reimbursement Fund but states that under state law, this money must be paid back into the fund within 18 months of the time it was borrowed.  Illinois also reports that it took $13,650,000 from its Wireless Carrier Reimbursement Fund to assist in closing its General Fund.  Illinois reports that this money does not need to be paid back…”  This raid on the fund is no surprise considering that the state has a $5 billion deficit.  Instead of raiding the fund, the Taxpayers Protection Alliance suggests that they read the many policy briefs published by the Illinois Policy Institute on how to balance their budget.

In addition to the seven states that aren’t using the money properly, there were three states (Kansas, New Jersey, and Oklahoma) and Guam that did not even respond to the FCC inquiry.  This non-response is troubling because there is no guarantee that the funds are being spent on the intended purposes and the fact that they feel that they don’t have to report.

Diverting money from emergency services to funding excess government spending is another kick in the wallet to taxpayers and consumers.