20240410ITSAP Administrator Report 2023 (AMENDED)..pdf

GNR-T-24-03
RECEIVED
ADMINISTRATOR'S ANNUAL REPORT Wednesday,April 10,2024 6:23 PM
IDAHO PUBLIC
IDAHO TELECOMMUNICATIONS SERVICE UTILITIES COMMISSION
ASSISTANCE PROGRAM
JANUARY 1 - DECEMBER 31, 2023
SURCHARGE REVENUES
The Idaho Telecommunications Service Assistance Program (ITSAP) surcharge is
assessed on all residential, business, and wireless end users not receiving the ITSAP
credit. Most companies actually remit net surcharge revenue, which is gross surcharge
revenue less any assistance credits provided to eligible customers and the company's
administrative costs. The ITSAP surcharge rate remained suspended during 2023, and
no gross or net surcharge revenue was collected or deposited during the year ended
December 31, 2023.
DISBURSEMENTS
ASSISTANCE CREDITS/COMPANY ADMINISTRATIVE EXPENSES
Telecommunications companies reported $233,312.50 in credits provided to eligible
subscribers, and reported $26,240.65 in costs for administration of the program for the
year ended December 31, 2023. That comes to approximately 7,777 credit recipients
per month/93,325 per year. Throughout the year, ITSAP reimbursed companies for net
monthly discounts provided to eligible subscribers and costs of administering the
program, so checks were written in the amount of$259,053.45.
ADMINISTRATIVE FEES AND EXPENSES
Administrative fees and expenses paid during the year ended December 31, 2023 were
allocated in the amount of$9,152.40 to the current Administrator, Kathleen Toohill.
Currently the bank is not assessing any bank fees.
1

INVESTMENTS AND FUNDS
CASH
As of December 31, 2022, the Idaho Telecommunications Service Assistance Program
had a cash balance of$603,650.78, and then one year later closed with checks clearing
at $334,811.90. The following is a table showing the quarterly cash balances for the
year of 2023:
CASH BALANCE CASH BALANCE CASH BALANCE CASH BALANCE CASH BALANCE
$ 603,650.78 $ 513,826.89 $463,437.66 $404,406.23 $334,811.90
INTEREST
No interest was earned on funds during the year ended December 31, 2023.
ADMINISTRATOR'S RECOMMENDATION
Currently, the surcharge rate is suspended, or $0.00 per access line and the assistance
credit amount is $2.50 per customer per month. Some companies report on a monthly
basis while some other companies report on a quarterly basis. During 2023, the number
of total credit recipients were reported at 93,325 while the number of credit recipients for
2022 were 80,692 - an increase of 115%.
In 2012, the Idaho Department of Health and Welfare introduced legislation amending
Idaho Code §56-902. This legislation reduced the amount of the monthly ITSAP
assistance credit from $3.50 to $2.50. The impact of this legislation combined with the
2012 fund balance indicated a need to reduce the surcharge rate, however there was a
cautious approach to reducing the surcharge rate for the following reasons: 1) The
unknown impact of wireless ETCs that had not begun marketing the ITSAP and Lifeline
discounts in Idaho; 2) The long-term impact of the ITSAP database reconciliation; and
2

3) The possibility that some companies not currently requesting reimbursement of
program administrative costs may do so in the future.
During 2023, the fund balance decreased by $ 268,838.88 since the surcharge has
been suspended. One company in particular has been receiving a significant portion
(70% approx.) of payments due to all of its customers qualifying as credit recipients; this
company provides free government benefit phone service and then assesses the
related company fund administration costs. The surcharge has been suspended for
several years, however this administrator recommends that the surcharge be reinstated
at this time. Average lines per month reported by telecommunications companies for
residential and business were at just over 131,000 combined lines per month. Wireless
lines were reported at about 147,000 per month. If the numbers of customers,
recipients, and fund administration were to remain the same for 2024 as 2023, then the
fund balance will be depleted to $56,061 which funds about one additional quarter of
funding into 2025. An ITSAP Worksheet and Historical DATA is attached showing the
need for the reinstatement of the assessment along with another sheet showing the
historical data 2021-2023.
278,686 reported monthly lines averaged throughout 2023 for local and wireless access
lines. In order to maintain around a $200,000 fund balance, then a line surcharge would
need to be reinstated at a minimum of$.043 . This rate would maintain a surcharge
closer to about $200,000, but that is not enough for one year of expenses.
When evaluating the annual income versus the outgoing expenses, then a line charge
of $.07 per line would be a recommended and more stabilizing rate to bring in annual
income closer to expected annual expenses (see ITSAP worksheet with historical data)
as average annual expenses over the last 3 years have been about $255,000. The fund
balance would reach about $290,157 with an $0.07 surcharge rate per line as of
December 31, 2024.
2023 Data by Quarter
Credit Assistance Program Check Fund
recipients credit Admin Totals Admin.
Q1 2023 31,349 $ 78,372.50 $ 9,163.89 $ 87,036.69 $ 2,287.20
Q2 2023 17,304 $ 43,260.00 $ 4,841.43 $ 48,101.43 $ 2,287.80
Q3 2023 20,627 $ 51,567.50 $ 5,938.73 $ 57,506.23 $ 1,525.20
3

Q4 2023 24,045 $ 60,112.50 $ 6,296.60 $ 66,409.10 $ 3,052.80
2023 Total 93,325 $233,312.50 $26,240.65 $259,053.45 $ 9,152.40
2023 Lines Reported by Quarter
Telco Q1* Q2 Q3 Q4* Annual Quarterly
Reported Total Reported
Lines Average
Residence 464,222 109,562 190,885 137,884 902,553 225,638
Business 438,310 80,573 74,583 78,707 672,173 168,043
Wireless 575,771 417,948 383,784 392,010 1,769,513 442,378
Unspecifie 2,965 1,879 3,238 2,817 10,899 2,725
d Access
Lines
Total 1,481,298 609,962 652,490 611,418 3,355,138 838,784
*There is a lag in receiving reports for Quarter 4 lines due to some companies reporting
monthly, quarterly and evenly annually subsequently up to 2-3 months behind, leading to a rise
in lines reported during Quarter 1 of the next calendar year. Due to the differences in company
reporting, averages are provided.
4