Minnesota spent tens of millions of dollars expanding high-speed broadband internet in recent years, but nearly $1.4 billion in public and private investment is still needed to get access to all households, according to a state task force report.
Gov. Mark Dayton's broadband task force released its final report Thursday. The panel urged lawmakers to designate $35.7 million annually in ongoing funds to expand broadband access. Without broadband, it is difficult for businesses to compete in today's economy, the report said. And schools and health care providers that lack high-speed access — particularly in rural Minnesota — struggle to serve residents.
"We have made a lot of progress in the state. There is more to be done," said Margaret Anderson Kelliher, chairwoman of the task force. "This is a solvable problem for Minnesotans, and it gets us to more success for people."
The task force called for more money for the Border-to-Border Broadband Development Grant program, which matches local or private broadband spending with state dollars. Seventy applicants competed for the $20 million available through the program last year.
It is the first of its kind in Minnesota, Kelliher said, and over the past four years it helped provide broadband to 34,000 households and 5,200 businesses. However, 252,000 households across the state still do not have broadband access that meets state standards for upload and download speeds.
The task force's goal is to connect all of those households by 2022. The $1.4 billion price tag to meet that goal would be covered by a variety of sources, including federal, state and local funding and private companies.
In November, state officials forecast a $188 million budget deficit over the next year and a half. Given that outlook, the task force's financial request "is a little daunting," said Kelliher, a DFLer who once served as speaker of the Minnesota House and now is president and CEO of the Minnesota High Tech Association.
The report is a good conversation starter, said Rep. Ron Kresha, R-Little Falls. The next state revenue and expenditure forecast in February will help determine what's affordable, he said.