Wisconsin’s state Legislative Audit Bureau investigated grant spending by the Wisconsin Public Service Commission (PSC) and raised concerns regarding spending oversight. The Milwaukee Journal Sentinel reported that over $100 million in grant funding from the federal Coronavirus Aid, Relief and Economic Security (CARES) Act and the American Rescue Plan Act (ARPA) was meant to expand high-speed internet across the state. However, the PSC failed to document project activities.
The PSC has used ARPA funds to award 83 broadband grants totaling nearly $100 million and utilized CARES Act funds for 12 grants totaling $5.3 million. “However, without any written procedures, documented verification efforts, or proper cost accounting, it’s still unclear if these dollars are being put to their highest and best use,” state Sen. Robert Cowles said in a statement.
The Journal Sentinel reported the PSC’s process is lacking, including inadequate written program policies, failing to indicate what the grant recipients had actually paid to construct their projects, not documenting its efforts to verify that grant recipients had built the high-speed internet infrastructure for which they were reimbursed, and insufficient transparency in the grant decision making process.
An estimated 650,000 Wisconsin residents lack broadband access, and even though the PSC released millions in grants, lawmakers are unsure exactly where service was implemented or improved. The PSC completed spot checks to verify that ARPA grant recipients built the broadband networks and delivered service. According to the Legislative Audit Bureau report, the agency did not provide proof for the CARES Act grants. “PSC did not document its contacts with businesses and residences in the areas covered by the projects, its attempts to ascertain whether it was possible to order broadband service at locations in those areas, or the information it had obtained from the Federal Communications Commission,” the report said.
Regarding transparency and decision-making, PSC Commissioner Ellen Nowak has been critical of how the agency administered the federal broadband grant money. She said there was a rush to get the CARES Act grants “out the door,” leading to poor decisions.
In June, the PSC awarded $125 million in broadband expansion grants for 71 projects reaching around 83,000 homes and 4,600 businesses. According to the agency, the projects will impact 45 counties, bringing new or improved internet access to unserved and underserved areas.
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