June 27, 2012
W.Va. to disclose unspent funds from stimulus broadband project
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The state budgeted about $78 million for construction costs and $56 million for equipment under the federal economic stimulus grant.

So far, the state has spent $39.3 million in stimulus funds for equipment, but only $5 million for construction. 

Frontier Communications, which is installing the fiber, has been paid $330,000 out of the grant funds. Frontier government affairs manager Scott Cosco told Broadband Council members Wednesday that the company's billing on the statewide project was "current."  

In response, Fisher said it doesn't make sense that Frontier would have been paid only $330,000, considering the company already has already installed 343 miles of fiber, which would cost about $8.5 million. 

"If Frontier's billing is current, there has to be a lot of invoices sitting on somebody's desk in the state," Fisher said.

Asked about the invoices later Wednesday, Frontier spokesman Dan Page said, "We have provided the state invoices on an ongoing basis in accordance with the procedures we received from the grant implementation team."

The Broadband Council has requested that state officials give a report about any projected unspent stimulus funds at the group's next meeting July 25.

The state must complete all broadband expansion projects and spend the stimulus money by February or risk losing unused funds.

"If the governor is going to have any input, he needs to know how much money is unused," Fisher said. "I don't want things to drag along, and we have to give the money back."

Earlier this month, U.S. House Republicans asked the Department of Commerce's inspector general to investigate West Virginia's use of the $126.3 million stimulus grant.

The request followed a series of Charleston Gazette reports that raised questions about the state's decision to purchase more than 1,000 Internet routers at $22,600 each. The state is installing the routers primarily in rural schools and libraries, even though the "enterprise-class" devices were designed for universities, medical centers and large corporations. State officials have defended the $24 million purchase.

Reach Eric Eyre at erice...@wvgazette.com or 304-348-4869.

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