VERMONT UNIVERSAL SERVICE FUND OVERVIEW VERMONT UNIVERSAL SERVICE - PowerPoint PPT Presentation

VERMONT UNIVERSAL SERVICE FUND OVERVIEW

VERMONT UNIVERSAL SERVICE FUND OVERVIEW • VUSF supports 5 programs • 2% fee on retail telecommunications services (i.e. telephone service) • Collected on retail telecommunications persons purchasing service • ILECs • CLECs • Mobile Carriers – prepaid and post paid • fee is a line item on consumers’ bills • Fund Managed by an independent fiscal agent --- Solix, Inc.

SUPPORTED PROGRAMS • Fiscal Agent Contract – Solix Inc. • Vermont Lifeline Program – bill credits to low income telephone users • Telephone Relay Service – Communications service for deaf and hard of hearing • Equipment Distribution Program – equipment for deaf and hard of hearing • Enhanced 911 - disbursements set by state budget • Connectivity Fund – supported by previous year surplus in the fund

VUSF Revenues and Expenses 2014-2018 $7,000,000.00 $6,778,983.00 $6,556,000.00 $6,500,000.00 $6,325,380.00 $6,246,000.00 $6,095,000.00 $6,047,158.00 $6,000,000.00 $5,956,973.00 $5,815,000.00 $5,682,000.00 $5,572,000.00 $5,500,000.00 $5,000,000.00 $4,500,000.00 $4,000,000.00 2014 2015 2016 2017 2018 Revenue Expenses

FISCAL YEAR 2018 DISBURSEMENTS FY 2018 Disbursements $171,000.00 Total Revenue: $103,000.00 $456,000.00 $5,815,000 Total Disbursement: 5,572,000$ $4,842,000.00 Source: 2018 VUSF Audit. Disbursements chart excludes disbursements from Connectivity Administrative Relay Lifeline E911 Fund.

VUSF BUDGET FISCAL YEAR 2019 $107,900.00 VUSF FY2019 Budget $75,000.00 $186,192.00 $364,618.00 Total Projected Revenues: $5,822,150 $4,831,183.00 Total Projected Expenses: $5,564,893 Administrative Relay Lifeline E911 Equipment

CONNECTIVITY FUND • Supports the High Cost Program and Connectivity Initiative • High Cost Program provides ongoing support to Vermont Eligible Telecommunications Carriers (VETCs). • Connectivity Initiative is a grant program that funds last mile broadband expansion. • Fiscal agent determines amount of available funding from previous year surplus. • 45% goes to High Cost, 55% goes to Connectivity

VUSF Distributions to the Connectivity Fund by Year $2,500,000.00 $1,926,000.00 $2,000,000.00 $1,500,000.00 Amount $1,140,000.00 $1,000,000.00 $461,000.00 $500,000.00 $400,000.00 $- $- 2015 2016 2017 2018 2019 Fiscal Year

FUND TRENDS • Declines in assessable revenue • Declines in phone rates • Shift from regulated to non-regulated revenues • Prepaid calling cards legislation • Expense Fluctuations • Decline in lifeline recipients • Decline in TRS traffic • Steady increase in E911 funding