Local broadband fees threaten millions in funding

In a recent government meeting, officials discussed the implications of Act 632 on local broadband initiatives, particularly concerning franchise fees imposed by municipalities. The act stipulates that if a municipality enacts an ordinance creating a broadband franchise fee, it could jeopardize grant agreements for broadband projects in that area, potentially hindering access to significant funding.

The meeting highlighted the $1.355 billion allocated for the Gumbo 2.0 broadband initiative, which aims to enhance internet access across various parishes. Officials expressed concern that existing ordinances, such as a 5% gross revenue tax on broadband services enacted by the East Baton Rouge Metro Council, could conflict with state law, risking the loss of approximately $10.1 million in funding for the parish.

To mitigate these risks, a letter was sent to legislators and local officials to clarify the provisions of Act 632 and encourage communication regarding any ordinances that might violate the act. The officials emphasized the importance of collaboration between state and local governments to ensure that broadband projects can proceed without legal obstacles.

The discussion also touched on the broader implications of federal regulations, such as the Internet Tax Freedom Act, although no definitive conclusions were reached regarding its impact on local franchise fees. The meeting underscored the need for local leaders to be vigilant about their ordinances to avoid unintended consequences that could affect broadband funding and access in their communities.