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Newsom’s Budget Cuts Deliver Massive Blow For Efforts To Expand Internet In LA
California's revised budget plan, which was announced Friday, would cut $2 billion in public funds initially earmarked to expand internet access across the state.
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Photo by Tomohiro Ohsumi/Getty Images
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In order to balance the state’s budget, California Gov. Gavin Newsom has proposed $2 billion in cuts to broadband projects that would have expanded internet access across the state.
The move outraged digital equity advocates in Los Angeles who say it could jeopardize efforts to reach some of the most vulnerable groups in the area. About 200,000 L.A. County households don’t have internet.
“We are disappointed to see this rollback,” said Cristal Mojica of the Michelson Center for Public Policy. The group is a member of the California Digital Equity Alliance.
The details
The revised budget plan, which was announced Friday, would cut the $1.5 billion that was greenlit for the state’s middle-mile project in January. That’s a new public broadband network the state is building in areas with little to no coverage.
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It would also cut all but $50 million from the state’s credit program called the “Loan Loss Reserve Fund,” which allows groups to secure more favorable borrowing rates and terms. And it would delay funding for broadband infrastructure known as “last-mile” projects until the 2027-28 fiscal year.
The trim was the largest of the one time funding cuts announced by Newsom as the state faces a deficit estimated at $56 billion over the next two fiscal years.
Mojica said advocates are concerned about the state’s ability to build the entire 10,000-mile network meant to expand internet availability to those in rural areas and neighborhoods that struggle to afford access, which includes 500 miles in L.A. County.
WHAT IS THE MIDDLE-MILE NETWORK?
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The state is building a new open-access broadband network called the “middle-mile,” which refers to the physical infrastructure that’s needed to connect people to the internet.
- Why does it matter? An estimated 3.5 million Californians are without internet access, according to state officials
- What’s the cost? At least $3.8 billion in public funds. The project is the largest of its kind in the U.S. About 10,000 miles of fiber optic cable is being installed throughout California, including more than 500 miles in Los Angeles County.
- Check out our past stories to learn more:
- April 23, 2024: California Is Spending Billions On ‘Broadband For All,’ But Critics Say It Will Not Lower Internet Prices
- April 24, 2024: Millions Have Been Set Aside To Get More People Online. Private Companies Want To Use It For LA's Wealthy Neighborhoods
- March 11, 2024: Broadband Is Too Costly Or Not Available For Many. So California Is Building Its Own Public Network
“So with this rollback of funds, it's very possible that only 80% of the network will be completed,” she said, adding that it could shut out some of the “highest areas of need.” The state had originally identified 18 target locations, including South Gate, Lynwood, Paramount and Compton in the L.A. area.
How To Submit A Public Comment To The State Legislature
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- Email budget feedback to the State Assembly: AsmBudget@asm.ca.gov
- Email budget feedback to the State Senate: SBUD.Committee@senate.ca.gov
- Find your state representatives and reach out to them directly here.
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What’s next
The state Legislature has until June 15 to pass a balanced budget. That gives them a little over a month to try and negotiate a final spending plan.
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