20250219ITSAP Administrator Report 2024.pdf

ADMINISTRATOR'S ANNUAL REPORT 14°' D
IDAHO TELECOMMUNICATIONS SERVI , 1 10; 24
ASSISTANCE PROGRAM �`
JANUARY 1 - DECEMBER 31, 2024 � : �;I„iOiSSION
Case No.: GNR-T-25-04
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. The majority of telecommunications companies remit net surcharge revenue,
which is gross surcharge revenue less any assistance credits provided to eligible
customers and the company's administrative costs, however checks are still being
processed for almost a dozen companies each month. The ITSAP surcharge rate was
reinstated during May 2024, so net surcharge revenue was collected or deposited
during the year ended December 31, 2024 and approximately $522,684 was deposited.
DISBURSEMENTS
ASSISTANCE CREDITS/COMPANY ADMINISTRATIVE EXPENSES
Telecommunications companies reported $223,770 in credits provided to eligible
subscribers, and reported $33,495.01 in administration program costs for the year
ended December 31, 2024. That comes to approximately 7,459 credit recipients per
month/89,508 per year. Throughout the year, ITSAP reimbursed companies for net
monthly discounts provided to eligible subscribers and costs of administering the
program; 135 checks were written and cleared in 2024.
ADMINISTRATIVE FEES AND EXPENSES
Administrative fees and expenses paid during the year ended December 31, 2024 were
allocated in the amount of$9,152.40 to the current Administrator, Kathleen Toohill.
Currently the bank is not assessing any bank fees.

INVESTMENTS AND FUNDS
CASH
As of December 31, 2023, the Idaho Telecommunications Service Assistance Program
had a cash balance of$334,811.90, and then one year later closed with deposits and
checks clearing at $633,525.91. The following is a table showing the quarterly bank
balances for the year of 2024:
CASH BALANCE CASH BALANCE CASH BALANCE CASH BALANCE CASH BALANCE
$ 334,811.90 $258,633.81 $204,556.75 $403,902.39 $633,525.91
INTEREST
No interest was earned on funds during the year ended December 31, 2024.
ADMINISTRATOR'S RECOMMENDATION
The surcharge rate had been suspended until May 2024 when it was reinstated at $.05
per access line. The assistance credit amount is set at $2.50 per customer per month.
Some companies report on a monthly basis while other companies report on a quarterly
basis, and even a few report on an annual basis. During 2024, the number of total credit
recipients were reported at 89,508 while the number of credit recipients for 2023 were
93,325 - a decrease of about 4% from 2023.
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
3) The possibility that some companies not currently requesting reimbursement of
program administrative costs may do so in the future.
During 2024, the fund balance increased by $ 298,714.01 due to the surcharge being
reinstated in May 2024. One company in had been receiving approximately 70% of the
ITSAP 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. This Administrator was informed in January 2025
that this particular company has discontinued business, however other companies
appear to be assisting those customers. Prior to May 2024, wireless lines were reported
as 0 for several companies until the surcharge was reinstated. If the numbers of
customers, recipients, and fund administration were to remain the same for 2025 as
2024, then the fund balance will continue to grow. 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 2021-2024.
Companies reported 278,686 lines monthly back in 2023, however in 2024 those
reported lines increased significantly when the surcharge was reinstated because
several companies had previously been reporting 0 wireless lines. The expected 2024
fund balance about doubled.
When evaluating the annual income versus the outgoing expenses, then a line charge
of$.03 per line could be a 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 4 years have ranged between $235,000-$320,000.
2024 Data by Quarter
Credit Assistance Program Check Fund
recipients credit Admin Totals Admin.
Q1 2024 26,979.5 $ 67,551.25 $ 7,209.64 $ 74,650.89 $ 1,527.20
Q2 2024 18,176.5 $ 45,441.25 $ 5,581.81 $ 51,023.06 $ 3,054.00
Q3 2024 28,327.5 $ 70,818.75 $ 4,329.98 $ 75,148.73 $ 2,290.80
Q4 2024 16024 $ 40,060 $ 16,376.58 $ 56,436.58 $ 2,263.60
2024 Total 89507.5 $223,770 $33,495.01 $250,010.65 $ 9,135.60

2024 Lines Reported by Quarter
Telco Quarter 1 I Quarter 2 Quarter 3 Quarter 4 Annual Total Quarterly
Reported Reported
Lines Average
Residence 311,166 139,714 172,007 1,266,027 1,888,914 472,228.5
Business 279,517 137,728 41,096 121,103 579,444 144,861
Wireless 385,478 204,917 4,029,693 4,353,138 8,973,226 2,243,306.5
Unspecified 1,734 6,341 3,650 2,488 14,213 3,553.25
Access
Lines
Total 977,895 488,700 4,246,446 5,742,756 11,455,797 2,863,949
Monthly reported average from 2024 for all lines is 954,649.75
*There is a lag in receiving reports for 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 following calendar year. Due to the differences in company reporting,
averages are also provided in order to give a better sense of lines.