November 9, 2016

Mr. Brian Bailey
Chairman
Indiana Finance Authority Board
1 N. Capitol Avenue, #900
Indianapolis, IN  46204

Dear Mr. Bailey,

Citizens Against Government Waste (CAGW) is a 501(c)(3) nonprofit organization with 36,138 members and supporters in the state of Indiana.  Over the past 20 years, the state’s fiscal and budgetary restraint has helped to create economic growth and stability.  Therefore, it was with great dismay that CAGW learned of a proposal to lease critical transportation communications networks and towers to a private sector company to fund bicentennial projects in Indiana. 

According to reports from Watchdog.org, the state has entered into a contract, subject to the Indiana Finance Authority’s approval, to lease the state’s transportation communications networks to Agile Networks of Canton, Ohio.  There would be an upfront charge of $50 million for a 25-year leasing agreement, and another $10 million should the state decide to extend the agreement for an additional 25 years.  While news reports have touted the contract as a means to expand broadband into unserved regions of the state, a review of the Request for Information (RFI) for this proposed contract does not specify that this is the intended purpose, nor does it mention an expansion of the network to unserved areas of the state.  Indeed, the RFI reveals that the majority of the towers being leased are along major interstate highways near large cities where private sector broadband networks currently operate.

This “creative” method of funding the bicentennial projects does a great disservice to all Hoosiers.  If the state wishes to expand broadband to unserved regions of the state, it should issue a clear and clean RFI that is intended solely for such purposes.  This proposal is an inappropriate method to fund the bicentennial projects, and CAGW urges the board of directors to oppose signing the contract. 

Sincerely,

Thomas A. Schatz
President
Citizens Against Government Waste 

cc: Governor Mike Pence; Hon. Brian Bosma, Speaker of the House; Sen. David Long, Senate President Pro Tempore