AUSTIN, Texas – Last week I was fortunate to secure an exclusive interview with Texas Comptroller Glenn Hegar about broadband connectivity. The Comptroller’s Office oversees the work of the Texas Broadband Development Office.
Two members of the advisory committee to the TBDO are from the Rio Grande Valley, businessman Alonzo Cantu and law firm CEO Sergio Contreras. In the interview, Hegar explained where South Texas communities that feel they do not have the best internet coverage can go for help.
And, as is customary as the unofficial Rio Grande Valley citrus ambassador, I brought the Comptroller a box of Ruby Red grapefruit.
Here is the Q&A:
Whitlock:
Mr. Hegar: Why do you think the Comptroller’s Office was chosen to oversee the Texas Broadband Development Office?
Hegar:
I think there was a wide variety of issues kind of going on. The Legislature look around. What agency is best capable of standing up a program over the course of the last sessions. The legislature has given us several different programs to stand up and so we have the capability of understanding how do you start from zero with no foundation, no staff, find the right staff. Figure out what are the issues. How do you deal with those issues? What are the funding streams, which for the broadband office are principally federal funding and trying to work within those confines to best deploy those dollars across the state. And, as you know, we have roughly three million households seven million people across the state, which is almost 25 percent of the entire state’s population, that does not have high-speed broadband internet their home. So the point being is, whether it’s in the Valley, the Panhandle, East Texas, West Texas, Central Texas, there’s a tremendous amount of need out there.
Whitlock:
When you were in Edinburg, at UTRGV, did you say that the Valley has the biggest digital divide in the state?
Hegar:
The Valley definitely has one of the biggest divides. If you look across the state of Texas, there’s a lot. We have very diverse geography. We have a very diverse workforce population, industry areas. And so some of the challenges are different. But obviously in the Valley, there is significant needs in broadband.
Whitlock:
Is high speed broadband connectivity an economic development issue in your opinion?
Hegar:
You know, what’s interesting about that question is, if you have watched the discussion over many years, about the need for broadband across the state of Texas, most of the times it got referenced pre-COVID was as being about economic development, bringing economic development opportunities to somewhere other than the urban suburban areas. But COVID brought it front and center, that it became more than just economic development. It became about access for kids, to public education, to higher education, about people being able to access telemedicine with their doctor because people were not able to go to the doctor’s office. And so with all of these different components, then it became front and center that without broadband, essentially… it is a critical piece of our life. And it is a critical, I would say, kind of the infrastructure, the transportation system of this century. You know, where the FM road system was back last century. And so, therefore, COVID really made it front and center that broadband was more than just economic development.
Whitlock:
You say that new funding for early education is a priority in your office here. Would you say that broadband is even more critical earlier in a child’s life rather than maybe later?
Hegar:
You know, what’s really interesting to me and as the parent of three children; so I’ve got a daughter that’s 18, about to graduate high school here next week, and I’ve got twins that are about to start as freshmen in high school. My point being is this. In watching their development over the years and parents that have younger children now (will know this), it is very fascinating how on the phone that you’re holding, on a computer, on a tablet, the devices that the kids use, we didn’t have these when I was in school. Just a few years ago they didn’t really have these and today’s capabilities for them to interact with different types of math games, for example, different learning processes, via the internet that are interactive, that will bring them into just like a discussion, to some degree, is amazing, the capability that now exists. So, the point being is, the kids that have that access, obviously have kind of a competitive advantage over the kids who don’t have that. And so it is much more of a component for an educational opportunity today than in the past. And I would say yes, as we all know, in any one’s learning in their life, the most development years are when they’re very early on in their childhood. That’s when your capacity is like a sponge and you absorb more. So, those early years are very critical is my point.
Whitlock:
How much money is the federal government sending to Texas to improve access to broadband and when will it be available?
Hegar:
So there’s there’s two different major programs. One, where the state of Texas is going to receive of our federal money that’s gone to DC and a portion that’s coming back, is about $500 million dollars. Half a billion dollars is coming to Texas. We have been authorized for the first $300 million-plus. Last month, we opened our web portal so vendors, the people we’re going to work with to try to expand capacity, that first tranche of money is a little over $100 million. So that first piece is starting now and we’re going through… we have accepted those applications and we’re going through those grant processes right now.
Now, the second piece, which is the one we don’t know about yet, we will know this summer, is the federal infrastructure bill that was passed. Those dollars, we don’t know exactly how much it is going to be. It will probably be $42 billion across the entire United States, US states and territories. Texas will get a piece of that $42 billion. Our share, we’ll know this summer, but we know it will be somewhere between $1 billion to $4 billion.
And then thirdly, through the legislative process right now, there is a bill that has passed the House and has moved to the Senate. The Senate is working on it and one of the things that I have asked is the state Legislature, that we as the state, of the $1 billion to $4 billion that may come to Texas – we don’t know exactly how much, hopefully is the higher number – requires a 25% match by the state or locals, local governments. And I am of the opinion that the state should provide that match. And so one of the things I’ve asked the Legislature in hopes that we get the full $4 billion in funding, the the half a billion (dollars) we have, the one to four billion, let’s say it’s four, I think the state should at least, at minimum, put in the matching local requirement, the 25 percent, which would be a billion (dollars).
Whitlock:
So if you have that billion you can use leverage that?
Hegar:
We can leverage that and then also the locals do have some money. Some communities have spent their money and spent it on local needs. Because local governments received some money during the COVID process and they had flexibility to use some of that for broadband. Some have done that to map their local regions. Some have done that to try to connect certain communities. But my point is, I don’t think we should pick winners and losers, because maybe their need was something else. So we shouldn’t penalize the community because they haven’t spent that money. So I just think the state should provide that match and add even more on top. Because the need is so great across the state. It’s going to take us a decade to fully try to connect the whole state of Texas, there are supply chain problems. Everybody’s wanting to try to do broadband across the nation. And so the point being is, it’s not something we can accomplish in a year or two. We wish we could, but it’s going to be a long term project connect Texas.
Whitlock:
And how about reimbursing communities in the Valley? Brownsville and Pharr have invested locally to get that (their broadband service) up while other communities have not. How about reimbursing those dollars that Pharr and Brownsville and maybe McAllen, which is claiming to have done the same, how about reimbursing those communities.
Hegar:
I think the first thing that we have to focus on is how do we connect the people in the state of Texas that don’t have connectivity. As a priority, first and foremost. And that’s how most of the federal funding is required (to be spent). We have to show that we actually were able to connect, Ron. So that’s one of the requirements in the federal funding. So because it’s a federal requirement, that’s our first and foremost priority; connecting new people into the internet capabilities.
Whitlock:
Are you happy with the maps that the Texas Broadband Development Office has issued? The maps that show connectivity?
Hegar:
So, one of the things that we had cautioned very early on, because of some of the federal requirements… the Legislature is working this session to to kind of clean up the legislation that was passed two years ago (because) there was an ability by some to kind of what I would say is game the system. In other words, internet providers, say, for example, they were able to show and say, ‘oh, we actually have more coverage than we do.” Say, for example, if they provided coverage to one person, and there were 100 people. Depending on the percentage of coverage, and it may not be very good coverage… so, for example, with telemedicine, you have to have much higher speeds up and down because the video needs to be on both ends, if that makes sense, to see your doctor and the doctor to see you. And so my point being is, the maps don’t truly, accurately, 100 percent reflect as the requirement we were having to do with the map as in what is the needs in the state of Texas. So we have adjusted those maps to show what we think the real need is across the state of Texas, which is different than what our requirement is through state statute if that makes sense. So we’ve gone ahead and done what we think (is right) so we’re happy with the map that we think truly reflects the true need because there’s a lot more need out there than the minimum requirement, is my point.
Whitlock:
Mr. Comptroller, what role does the state Legislature play in improving broadband connectivity and which relevant piece of legislation, if any, are you supporting this session?
Hegar:
So there’s a lot a lot of ways the Legislature plays a role because obviously they created the Texas Broadband Development Office. So that’s key number one. They’ve got some legislation this session to give us some greater flexibility to clean up that legislation. So that’s really important. And I think that’s going to pass. And then, lastly, as we alluded to earlier, there’s some legislation to provide state funding, which I think is very critical; that the state needs to have flexibility because, unfortunately, most of the federal funding has too many strings and requirements. I know that’s such a shock that the federal government would have strings and requirements. And so having greater flexibility with our state tax dollars would enable us to fill in gaps and make sure that we’re truly covering people. So that is a key piece that the Legislature can play a role in, making sure their constituents, the Texan citizens. are actually connected.
Whitlock:
Now the House has come in with a $5 billion number to to fund your office. And the Senate is now wrestling with that. What would you tell the Senate in order to perhaps end up with the $5 billion. What would you suggest they do over at the state Capitol?
Hegar:
Yes. There are a couple of different pieces. So part of that $5 billion is for broadband. Part of that $5 billion is for 9-1-1 coverage. Part of that is for the Universal Service Fund. And so there are several different components that are part of the $5 billion. And so while I support universal coverage of telephones, while I support 9-1-1 and that infrastructure to make sure that when you hit 9-1-1, it’s going to work… that’s backend infrastructure. And so, while those are important issues, my charge and my task is broadband. And so one of the things that I’ve said is, we need to make the federal match… and let’s assume we get the full $4 billion out of the federal program, we’ll find out this summer, so we need a billion for that… I think we also need an additional billion dollars of flexible dollars because the state of Texas has to deal with the federal requirements. And so if we had some flexibility… but I’ve also said that in subsequent legislative sessions, we’re going to have to come back because we think it’s probably going to take us somewhere between eight and 10 years to truly connect Texas, a substantial portion of the state of Texas, and that also means you are going to end up spending probably $750 million or $1.2 billion a year. So this is a long term infrastructure program to try to connect Texas. And so my point is, we can come back next session and try to make sure that we have supplemental funding.
Whitlock:
So, this is a good investment for the long term, to make a generational change?
Hegar:
That’s exactly right. And that’s one of the things that I’ve said. When we’re talking about the amount of funding that they have for this legislative session, it is a once in a lifetime funding opportunity. They need to invest in long term infrastructure, invest in returning some of it back to the taxpayers of the state of Texas and tax cuts. And so if you focus on those two things, then you’re going to make a substantial difference for more than one generation.
Whitlock:
What is your message to a municipality or community that believes it does not have good broadband service?
Hegar:
Well, first and foremost, continue to engage with us because we’ve been on a listening tour. We continue to engage in different roundtable discussions where we can communicate with all types of industry sectors and communities on what is their specific needs. We have an online survey going on, again, another round of surveys where individuals can go on our website and actually go through so that we can better understand down to the zip code, what is your coverage, what do you use the internet for? Because that type of local information is critical for us in working with vendors to better address the needs of those communities. So communication, that’s what we need. That dialogue.
Whitlock:
So would you also indicate or encourage them to communicate, the Valley in particular, to Alonzo Cantu and Sergio Contreras, who are on your advisory panel?
Hegar:
That’s right, that’s exactly right. And making sure that that we have that communication. And then, secondly, as we’re working on this, it’s called partnerships. Partnerships are key to being successful. And that’s partnering with local communities to make sure we understand the needs and how do we address those needs.
Whitlock:
What about US Senator John Cornyn, at the same time?
Hegar:
Yes, and making sure that we continue to we have ongoing discussions with our federal partners so they understand, say, for example, when, under one of the programs, the B program, which is the $1-$4 billion, that the federal requirements come out of the agencies is more restrictive than what Congress passed. And so we’re trying to continue to talk with Congress (to say) that, you might want to remind them your intent was to give flexibility to the states and they’re being very restrictive in the federal funding.
Whitlock:
Anything else you’d like to add?
Hegar:
I think you touched we touched on a whole lot. Good job.
Whitlock:
Thank you so much. Comptroller Glenn Hegar, who’s the head of the Texas Broadband Development Office? here in Austin, Texas, this report for Rio Grande Guardian and Ron Whitlock Reports. Until next time, adios.
Ends
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