20230215ITSAP Administrator Report 2022.pdf

ADMINISTRATOR'S REPORT
IDAHO TELECOMMUNICATIONS SERVICE
ASSISTANCE PROGRAM
YEAR ENDED -DECEMBER 31,2022
SURCHARGEREVENUES
The Idaho TelecommunicationsService Assistance Program (ITSAP)surcharge isassessedonallresidential,business,and wireless end users not receiving the ITSAPcredit.Most companies actually remit net surcharge revenue,which is gross surchargerevenuelessanyassistancecreditsprovidedtoeligiblecustomersandthecompany'sadministrativecosts.The ITSAPsurcharge rate remained suspended during 2022,andnogrossornetsurchargerevenuewascollectedordepositedduringtheyearendedDecember31,2022.
DISBURSEMENTS
ASSISTANCE CREDITS/COMPANYADMINISTRATIVEEXPENSES
Telecommunicationscompanies reported $201,731 in credits provided to eligiblesubscribers,and reported $24,975 in costs for administrationof the program for theyearendedDecember31,2022.That comes to approximately6,725 credit recipientspermonth/80,692 per year.Throughoutthe year,ITSAP reimbursed companies for netmonthlydiscountsprovidedtoeligiblesubscribersandcostsofadministeringtheprogram,so checks were written in the amount of $226,705.38.
ADMINISTRATIVEFEES AND EXPENSES
Administrativefees and expenses paid during the year ended December 31,2022 were$9083.60 paid to the current Administrator,KathleenToohill.Currentlythe bank is notassessinganybankfees.
RECEIVED
2023 February 15
IDAHO PUBLIC
UTILITIES COMMISSION
CASE NO. GNR-T-23-03
INVESTMENTSAND FUNDS
CASH
As of December 31,2021,the Idaho TelecommunicationsService Assistance Programhadacashbalanceof$839,112.87 and then one year later closed with checks clearingat$603,650.78.The following is a table showing the quarterly cash balances for theyearof2022:
CASH BALANCE CASH BALANCE CASH BALANCE CASH BALANCE CASH BALANCE12/31/21 3/31/22 6/30/22 9/30/22 12/31/22
$839,112.87 $782,140.54 $738,186.36 $648,934.23 $603,650.78
INTEREST
No interest was earned on funds during the year ended December 31,2022.
ADMINISTRATOR'SRECOMMENDATION
Currently,the surcharge rate is suspended,or $0.00 per access line and the assistancecreditamountis$2.50 per customer per month.Some companies report on a monthlybasiswhilesomeothercompaniesreportonaquarterlybasis.During 2022,the numberofcreditrecipientswasalmost8timesthepreviousreportedyearduetoonecompanyprovidingfreegovernmentbenefitphoneservice.
In 2012,the Idaho Department of Health and Welfare introduced legislation amendingIdahoCode§56-902.This legislation reduced the amount of the monthly ITSAPassistancecreditfrom$3.50 to $2.50.The impact of this legislation combined with the2012fundbalanceindicatedaneedtoreducethesurchargerate,however there was a
cautious approach to reducing the surcharge rate for the following reasons:1)TheunknownimpactofwirelessETCsthathadnotbegunmarketingtheITSAPandLifelinediscountsinIdaho;2)The long-term impact of the ITSAP database reconciliation;and3)The possibility that some companies not currently requesting reimbursementofprogramadministrativecostsmaydosointhefuture.For the most part,these eventsdidnotoccur,making it unlikely that the current fund balance will be reduced.ThecurrentfundbalanceindicatescontinuedsuspensionoftheITSAPsurchargeisnecessary.
During 2022,the fund balance declined approximately$235,462.One particularcompanyreceivesasignificantportionofpaymentsduetoallofitscustomersqualifyingascreditrecipients;this company provides free governmentbenefit phone service plustherelatedcompanyfundadministrationcosts.The surcharge can remain suspendedforonemoreyear,and I continue to recommendthat companies report access lines.Average lines per month reported by telecommunicationscompanies for residential andbusinesswerealmost140,000 lines combined with wireless about 222,362 per month.Residential lines could drop by about 100 and be about 70,000 per month.The fundbalanceremainingshouldprovesufficientforanotheryearoftheprojectedcreditrecipients,company administrativecosts,and fund administrationwith about $235,000estimatedforthe2023budget.December 2023 could realize an estimated endingbalanceof$335,000.00 with approximately6725 credit recipients estimated per monthandtherelatedfundadministrationcosts.2024 will be a year to look at the potential ofreinstatingthesurcharge
Credit Assistance Program Check FundrecipientscreditAdminTotalsAdmin.
Q1 2022 19,270 $48,175.25 $6,511.58 $56,972.83 $2,286.00
Q2 2022 14,850 $37,125.00 $4,533.98 $41,668.98 $2,285.20
Q3 2022 31,187 $77,967.50 $8,991.58 $86,866.08 $2,286.00
Q4 2022 15,297 $38,242.50 4,754.95 42,997.45 $2,286.00
2022 Total 80,604 $201,510.25 $24,808.64 $226,318.89 $9,143.20