The FCC’s allocated budget has declined more than 17 percent since Fiscal Year 2009, says Chairman Ajit Pai, forcing the Commission to operate more efficiently. But he cautioned lawmakers on a House Appropriations Subcommittee Thursday that if its budget is cut any more it could threaten the agency’s ability to carry out its work.
The Commission is asking for $333,118,000, derived from regulatory fees for regular FCC operations; that compares to an appropriation of $322,035,000 for FY 2018—down about five percent from the agency’s FY2017 appropriation. The FCC is reducing its workforce to comply with a directive from the Office of Management and Budget to reform the federal government and reduce the federal civilian workforce. “We are combining regular attrition with voluntary personnel actions to achieve these levels,” Pai told lawmakers during a budget hearing. By the end of FY 2018, the agency projects its number of full-time workers “will have declined over 10 percent in two years,” he said.
It’s important to “stabilize” FCC employment now because the Commission has a lot on its plate, he said, mentioning the upcoming wireless auctions and ongoing television repack specifically. As the technologies the FCC regulates become more complex, the agency wants to bolster its ranks of engineers, so it established a program to recruit recent engineering graduates this year.
The FCC asks for $112,734,000 for auctions, up slightly from the FY2018 level of $111,150,000. The FCC anticipates holding at least two high-band spectrum auctions—one for the 28 GHz band and another for the 24 GHz band in the coming fiscal year; it expects to prepare to auction additional high-band spectrum as well as mid-band spectrum in the 3.5 GHz band.
Additional money for broadcast repack reimbursements included in the Omnibus spending measure will be used to fund low-power TV stations, TV translators and FMs that incur repack-related costs, as well as for consumer outreach. The additional money allows broadcasters to execute their postauction construction, “prevents undue financial burdens, and minimizes the likelihood that we will need to claw back funds,” said Pai. Also, noncommercial stations associated with state college systems that faced problems with local anti-deficiency statutes should now be able to maintain their licenses and have the funds to finance the repack, according to the Chairman.
Now, the FCC has to develop a rulemaking and oversee the distribution of the additional repack funds. Two repack-related costs — for LPTV/translators and FM radio stations — will involve significant data analysis, new information technology assets, and staffing. “Given the complexity of developing the prior analysis for the full-power [TV] stations and the sheer number of stations likely to seek funding under these new programs, we expect that this effort will be resource-intensive,” said Pai.
By Leslie Stimson, Inside Towers Washington Bureau Chief
April 27, 2018
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