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The Honolulu Advertiser
Posted on: Monday, December 25, 2006

$14M phone fund barely used

By Sean Hao
Advertiser Staff Writer

"We’re not sure what the costs will be. We’re trying to assess our needs. That’s the reason we’re not seeking to have it reduced at this time."

— Roy Irei | chairman of the Wireless Enhanced 911 Board

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The state has raised more than $14 million in the past 2 1/2 years through a cell-phone tax to pay for technology that pinpoints the location of wireless 911 emergency callers. So far about $200,000 of that money has been spent.

Still, a board overseeing the state's enhanced wireless 911 fund has no plans to petition the Legislature next year to reduce or repeal the 66 cent-a-month fee levied on about 860,000 mobile phone users in the state. The fee was created in July 2004 to reimburse public safety agencies and wireless carriers for costs needed to locate wireless 911 callers.

So far such a system is available only on Maui, though plans are for the technology to be available via all wireless carriers on O'ahu by the end of March.

The system in Maui will cost the state about $400,000. The system on O'ahu is expected to cost about $2 million.

Still the 911 board is hesitant to touch the fee even though the fund has $14 million banked.

Just how much the system will cost to implement statewide is still uncertain, said Roy Irei, chairman of the Wireless Enhanced 911 Board, which oversees the fund.

He said board members, which include public safety officials and wireless carriers, don't want to reduce or eliminate the fee until they figure out how much the system will cost.

"We're not sure what the costs will be," Irei said. "We're trying to assess our needs.

"That's the reason we're not seeking to have it reduced at this time."

Meanwhile, the amount of money in the fund continues to pile up with inflows of about $570,000 a month, or $6.8 million a year.

The board also has about $900,000 left over from a $1.2 million federal grant.

'SEND ME A CHECK'

At least one cell-phone user would like to see the fee eliminated.

"Get rid of the fee and send me a check please," said Ted Green, a landscape architect and cell-phone customer in Ka'a'awa.

The fund was set up to help emergency services dispatchers identify the addresses and locations of those who dial 911 from cell phones. Dispatchers can already trace calls from regular land lines.

About half of all 911 calls are made by cell-phone users. Enhanced wireless 911 technology is especially helpful in situations where callers are disoriented or are unfamiliar with their surroundings.

One cell-phone carrier has started testing the technology on O'ahu this month. Ed Kurzenski, chief technical officer for Mobi PCS said the technology could be available to subscribers across O'ahu as soon as mid-January.

"Obviously accuracy is important," he said. "There's no point in having it if it's not accurate. That's why there is all this testing."

Maui's system, which launched earlier this year, cost the state just $300,000 so far, though another $100,000 payment to Maui from the 911 fund is pending.

The cost to launch the technology on O'ahu, which is expected to have the highest price tag, is estimated at $2 million.

The cost on the Big Island, which expects to be able to locate wireless callers starting in March or April, is estimated at between $250,000 and $400,000, said Maj. Sam Thomas, division commander for technical services for the Hawai'i County Police Department.

Kaua'i's system, which is estimated to cost about $400,000, is expected to running by August.

OPERATING COSTS

Once the wireless phone location technology is deployed statewide there will be ongoing estimated operating costs of $148,000 a month for counties with wireless carriers incurring another $56,000 in monthly recurring costs, said Phil Kahue, executive director for the 911 board.

Delays in implementing the service statewide were partly a result of lengthy municipal budgeting and approval processes and a lack of technical expertise.

In addition, counties can seek only reimbursements from the fund instead of getting money up front to improve their wireless tracking systems.

The 66-cent charge was set by the Legislature. Although the 911 tax includes no sunset provision, the board that oversees the enhanced wireless 911 fund can petition the Legislature to reduce it or repeal it.

The fee is charged against each cell-phone number not connected with federal, state or county government. Wireless phone companies are allowed to keep 1.32 cents of the 66 cents to cover costs associated with collecting the fee, or about $300,000 so far.

State Sen. Sam Slom, president of Small Business Hawaii, said the fee was arbitrarily set too high and should be suspended.

"From the very beginning it has been flawed," said Slom, R-8th (Kahala, Hawai'i Kai). "How can you go and get money if you don't know how much it will cost?"

However, Slom said he doubted the Legislature would eliminate the fee, which ultimately will result in a windfall for the state.

Other uses for fund?

One possible use for excess money raised by the 66-cents-a-month fee could be the construction of cell-phone towers in "dead spots" around the state, said Irei. However, further study of such a move is needed, he added.

Gordon Bruce, director for the city's Department of Information Technology, said the construction of cell-phone towers in non-service areas such as valleys and hiking trails fits the fund's public-service purpose.

"The companies don't put cell towers out there because there's no return on investment," he said. "We could build a tower and put all the carriers on that one tower and put the police and fire emergency services radios on that tower."

Lowell Kalapa, president of the nonprofit Tax Foundation of Hawai'i, said using excess money raised from cell-phone fees to construct cell-phone towers may serve a public purpose. However, there would not be excess money in the fund if the fee were not set too high in the first place.

Both Kalapa and Slom predicted that the Legislature ultimately will raid the enhanced wireless 911 fund to pay for other state needs.

"It is going to become the target of some drooling legislator," Kalapa said. "That is not how you run government. The public ought to hold (lawmakers) accountable."

Reach Sean Hao at shao@honoluluadvertiser.com.