JFAC analysis: Dumping IEN cut costs 37%, per-megabit cost fell 61%; Admin Dept will lose program next year

Legislative budget analysts have gone over the final figures for school districts’ short-term broadband contracts for the rest of the current school year, compared to costs under the defunct Idaho Education Network, and they show that a 37 percent decrease in cost. The cost per megabit declined by a whopping 61 percent.

“I think overall it’s good news for our school districts,” said Sen. Shawn Keough, R-Sandpoint, JFAC vice-chair. “It’s more evidence that the Legislature is taking the right steps to push the hold button, so to speak.” The Joint Finance-Appropriations Committee already has decided, when it set the budget for next year for the state Superintendent of Public Instruction, to continue the local district contracts next year instead of a statewide contract for high school broadband and video-conferencing services to replace the IEN. Today, JFAC is setting the budget for the state Department of Administration; it includes pulling five positions and millions of dollars in funding out of the department’s budget. That’s because the IEN no longer will be operated by the department next year.

Gov. Butch Otter had requested $10.5 million for the IEN next year, including $6.7 million in the Admin budget to replace federal e-rate funds that were lost because the state issued the $60 million IEN contract illegally. Individual school districts mostly are expected to qualify for e-rate funding next year, which will substantially reduce the state’s costs.

JFAC members also have added a section of “legislative intent” to the Department of Administration’s budget for next year to show their dissatisfaction with the department’s decision on Feb. 27 to declare an emergency and sign a $1.88 million, six-month, no-bid contract with CenturyLink to continue broadband service to 21 state agencies. The department had shifted those agencies’ broadband service to fall under the IEN’s contract with vendors CenturyLink and Education Networks of America; when courts declared the contract illegal, that had to end.

“Our focus in the short term was on trying not to disrupt the school districts and the kids,” Keough said. “We actually told the Department of Administration that they were on their own … with the state agencies. While I was surprised at their action, they signed a six-month contract.” With strings tied to next year’s budget, JFAC is requiring Admin to “do a real bidding process,” Keough said.

The intent language requires the department, before the six-month emergency contract ends, to “analyze and justify the cost, benefits, and flexibility of a statewide contract, as compared to individual contracts issued by state agencies, for the purchase of broadband and related services for state agencies. Said analysis and justification may include, but is not limited to, issuance of a Request for Information or Request for Proposal and the Department of Administration is hereby directed to issue contracts(s) based on the results of said analysis. In addition, the Department of Administration shall not enter into any contract with an initial term, or a renewal option, that is longer than one year until a longer-term policy direction is established by this Legislature in concert with the Governor.”

The section of legislative intent language includes an emergency clause, giving it the force of law not just for the next fiscal year, which begins July 1, but also for the rest of this year; it makes it effective as soon as it’s signed into law. The joint budget committee voted unanimously in favor of the budget proposal for Admin, which overall reflects a 66.2 percent decrease in state general funds and 31.1 percent decrease in total funds. Gov. Butch Otter had recommended a 27.1 percent increase in state funds and 6.7 percent overall. One item, $245,400 for additional training for those involved with state purchasing, wasn’t included in today’s budget bill, but will be funded through a trailer appropriation bill should rules authorizing it win support from germane committees in the House and Senate.