“Texas was one of only five states in the nation that did not have an office focused on broadband development, Internet connectivity across the state,” State Comptroller Glenn Hegar told an audience of about 180 in Hurst.
“We have been talking about this in Texas for a very long time. Principally, it has been talked about more so in rural economic development and in other terms.
“However, unfortunately, 2.5 years ago — COVID — businesses were shut down, schools were shut down. People couldn’t go to see their doctors — doctors’ offices were shut down,” he said. “All of a sudden, the ability to connect one-on-one became so much more important. The discussion, as we all know, fundamentally changed.”
The agency since November 2020 has supported the BDO, conducted a Broadband Listening Tour and issued the Texas Broadband Plan.
The BDO was established under House Bill 5 during the 87th Legislature. The office, housed under the comptroller’s office, is charged with creating an accurate broadband map, awarding grants and monies, setting the threshold speed for broadband, providing community outreach and addressing barriers to expansion.
During the Broadband Listening Tour, part of the office’s early outreach, Hegar and BDO Director Greg Contevisited 12 regions.
“What we have learned is that, unfortunately many of you know, there are 3 million households or 7 million people in this state — 7 million, almost 25 percent of the entire state’s population — that has no connectivity, zero connectivity,” he said. “That’s not because they can’t afford it but because it doesn’t exist.”
The state plans to use funding from the Infrastructure Investment and Jobs Act (IIJA) via the National Telecommunications and Information Administration (NTIA), which has prioritized fiber as the preferred broadband delivery method. Hegar voiced concern over the prioritization, stating that the funding was originally intended to be technology-neutral.
Federal funding includes:
- $500.5 million, American Rescue Plan — Coronavirus Capital Projects Fund.
- At least $100 million, IIJA — Broadband Equity, Access and Deployment Program.
- An undetermined amount, IIJA — The Digital Equity Act.
The office has responded to the recently released NTIA notice of funding opportunity (NOFO), Hegar said, although some perceived that guidelines may be restrictive.
“We have got to figure out how to put that (money) to use, but I wanted to make a point to the feds that if fiber is the only option, and oh by the way, you say that satellite means that’s the same as no coverage,” he said. “The bill that the Legislature passed and the bill that Congress passed is technology-neutral.
“And so the point is, can we connect the entire state of Texas immediately with fiber? ‘No’ is the answer,” Hegar said, continuing that there could be supply chain issues and other hurdles to cross. However, the application has been made, and BDO is working on “rules and processes upon which we will distribute the half a billion. We hope to have that by the end of the year.”
Data contained in the broadband plan includes:
- The history of BDO.
- Funding sources.
- How Internet services are delivered.
- How many Texans are connected or have low/no service.
- What communities are in most need of connectivity.
- Next steps.
The comptroller’s office handles a variety of issues including the state treasury, tax collections, and monitoring the state economy. It employs 3,000 people, the comptroller said.
Hegar closed with an update on the state economy, saying that the Christmas 2021 season sales and severance taxes generated $3.9 billion for the economy. The state’s recent sales and severance tax surplus will add to a projected $27 billion cash carryover balance for the next legislative session’s budget build.
The North Texas Commission (NTC) put on the day’s event, which featured speakers including Helen You, Ph.D., senior demographer for the Texas Demographic Center, and infrastructure experts including those working in electric reliability, regional water supply, sustainability and public-private partnerships.
