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HomeMy WebLinkAbout20250219ITSAP 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.