Some state funding for infrastructure in the KentuckyWired broadband network would be suspended under a recommendation made last week by a legislative committee.
Citing court battles that have embroiled the agency, the Information Technology Oversight Committee recommended “deauthorizing” money for bonds that have not yet been issued for “infrastructure upgrades and network refreshes” by the Kentucky Communications Network Authority (KCNA).
The report to leaders of the GOP-controlled legislature also recommends no future appropriations be made to the authority for infrastructure upgrades and network refreshes. The legislature allocated $25,359,000 in bonds for the authority in the current two-year state budget for “critical” infrastructure upgrades and purchases.
Sen. Gex WIlliams, R-Verona, a co-chair of the committee, told the Lantern that the recommendations would be a “pause” in funding until ongoing lawsuits between the Kentucky Communications Network Authority and Accelecom — a private telecom provider that partnered with the authority to manage the network — are resolved.
“We don’t want to limit whoever’s going to deal with this in the future” by making investments into the network today, Williams told the Lantern.
He also said the recommended “pause” is to allow time for Republican State Auditor Allison Ball to finish an audit of the authority’s finances, an investigation the state legislature previously approved and allocated money toward.
The authority manages hundreds of miles of fiber optic cable built across the state to provide high-speed internet connection to every county seat, serving as a “middle mile” of internet connection. Private companies can then build a “last mile” of internet connection directly to homes and businesses.
The network construction — originally launched in 2013 under former Democratic Gov. Steve Beshear — has faced criticism in the past from state lawmakers for overspending by at least $100 million and years-long delays in getting the network live for businesses, households, school districts and other public entities to use.
The Kentucky Communications Network Authority over the past two years has been entangled in litigation with the private company Accelecom, or Open Fiber Kentucky Company LLC, which it partnered with to manage the broadband network. The ongoing contract disputes before Franklin Circuit Court Judge Phillip Shepherd include Accelecom seeking permission to connect certain customers to the middle mile network.
WDRB in Louisville reported earlier this year that the authority had terminated its contract with Accelecom earlier this year because the private company had allegedly violated the terms of its agreement. Accelcom had sent a letter to customers using the network that internet connections could be shut off at the end of the month.
Williams said he had lost confidence in the executive director of the authority, Doug Hendrix, to make “reasonable decisions” on infrastructure upgrades for the network because he’s not confident the authority has proper technical expertise. Williams said he plans to file a bill during the legislative session that begins in January to remake the board overseeing the authority.
Hendrix and Greg Maddox, the general counsel for the authority, did not immediately respond to emailed requests for comment about the committee’s recommendations and Williams’ comments.
Rep. Chad Aull, D-Lexington, one of two Democrats on the committee, told the Lantern he was out of state when the committee released the recommendations last week and was “out of the loop” on the details of the report. During last week’s committee meeting, Williams told his fellow lawmakers the committee was “not required” to vote on the report when it was released.
A spokesperson for Democratic Kentucky Gov. Andy Beshear did not immediately provide a response to a Lantern request Monday afternoon asking about the committee’s recommendations.
This story was originally published by the Kentucky Lantern and republished here with permission.