KentuckyWired will cost taxpayers almost $1.5 billion over the next 30 years. That is according to State Auditor Mike Harmon who conducted a special nine-month examination of the Kentucky Communications Network Authority (KCNA) and KentuckyWired, the statewide broadband project announced in 2014. He says that is among nine findings detailed in his report, which will be referred to the Executive Branch Ethics Commission for further review and possible action by that agency.
During the release of the KCNA examination, Harmon said when KentuckyWired was announced by the prior administration, Kentuckians were told they would only be responsible for a $30 million investment approved by the General Assembly in 2014, and the majority of funding would come from private investment. However, he notes they have now found that between what has been paid out thus far, what has been bonded, and what they have been obligated to by former leaders, taxpayers are responsible for 93 percent of the total cost for KentuckyWired.
In addition, the report details that the KentuckyWired project is almost $100 million over budget for construction costs, and the original planned completion date for the project has already passed. Meanwhile, Harmon says the state is making so-called “availability payments” to contractors for a network that is not available or operational. His examination also details other issues with KCA and the KentuckyWired project including significant changes that were made by the Beshear administration in 2015 that placed the burden on taxpayers.
Harmon noted the General Assembly is conducting its own investigation through the Program Review and Investigations committee and his office will continue its exam specifically covering the time frame between when the RFP was issued in 2014 and when the project agreements were signed in September 2015. Harmon said his office will continue its exam and will use any and all authority given to them, including subpoena powers if needed, in an attempt to get to the bottom of what happened and to make sure future projects are done in a responsible and transparent fashion.
