In July 2004 the state placed a monthly fee of 66 cents onto local wireless phone bills to pay for technology to track wireless 911 callers.

Today the enhanced wireless 911 technology has been deployed statewide and the system has been paid for — and there's a $19 million surplus.

Yet the state has no plans of taking that 66-cent fee — which equates to $31.68 a year for a family with four phones — off your bill anytime soon.

The state board in charge of the program is aware of the large bank balance and may recommend to lawmakers next year that the tax be cut to 39 cents. But it doesn't want to do away with the fee altogether.

That money may be needed to maintain the system, said Phil Kahue, executive director of the Wireless Enhanced 911 Board.

"We haven't settled on a (new) figure yet" for the tax, he said. "When you reduce a surcharge (then) come back and raise it again — that's what the (board) wants to avoid."

A fee reduction seems overdue, said Hawai'i Kai resident Cynthia Pandolfe, whose household has four cell phones.

"Now that they have it running, they shouldn't be charging us that full amount for sure," she said. "They should disburse the fund to other areas that could help missing children, missing persons, things like that."

State Sen. Sam Slom, R-8th (Kahala, Hawai'i Kai), said he'd like to see the fee eliminated.

"It just makes common sense. They've got that huge balance already," said Slom, president of Small Business Hawai'i. "They could do a great deal with that. If I had my way everybody that paid into it would get a refund."

The large surplus stems in part from lawmakers not knowing how much it would cost to build the system when they approved the tax. But it's unlikely consumers will get a refund now that the system is completed.

The 911 board plans to use the surplus to install communications towers in remote areas with little or no wireless coverage. They're also considering installing equipment to boost wireless coverage in state and county buildings.

The fund was set up to help emergency services dispatchers identify the addresses and locations of those who dial 911 from cell phones. Enhanced wireless 911 technology is especially helpful in situations where callers are disoriented or are unfamiliar with their surroundings. About 60 percent of all 911 calls are made by cell phone users.

The locator technology could have helped rescuers locate a plane that crash-landed in a Big Island lava field in 2004. It took emergency responders 5 1/2 hours to locate survivors, who called for emergency help almost immediately, but were unable to tell rescuers where they were. However, it's unknown how often public safety officials actually rely on the locator technology to find wireless callers, Kahue said.

DEPLOYMENT EXPENSES

So far $3.79 million has been spent over three years deploying the system, which is 93 percent complete. Moloka'i is the only island with partial deployment and that's expected to be fixed by year's end when AT&T Wireless becomes capable of locating wireless callers on the island. Moloka'i carriers Verizon Wireless and Sprint Nextel already can locate 911 callers.

Overall, the monthly fee of 66 cents which is charged against each cell phone number not connected with federal, state or county government, has generated $21.6 million including interest. The state also received a federal grant of $1.2 million to build the system.

Wireless phone companies are allowed to keep 1.32 cents of the 66 cents to cover costs associated with collecting the fee, or about $400,000 so far.

Most of the money spent from the fund has gone toward purchasing and installing equipment in city and county 911 call centers. Wireless carriers, which sometimes charge customers a separate fee for enhanced 911 services, also are eligible for reimbursement.

So far wireless companies have received little from the fund. However, that could change if board members move ahead with a plan to build one or two cell phone towers a year at a cost of $1 million to $1.5 million per tower.

Under the plan, which is still in a preliminary stage, wireless carriers would be reimbursed about $400,000 each to install their equipment on each tower.

The idea behind the plan is to expand wireless coverage in rural areas where service isn't commercially feasible, said Roy Irei, Hawai'i general manager for T-Mobile.

"It would be good for us if there was a process in place to help with coverage deficiencies," he said. "But it's not just good for wireless carriers because there's a lack of coverage for emergency services like fire and police" especially on Neighbor Islands, Irei said.

Wireless carriers Sprint Nextel Corp. and Mobi PCS would be eligible for the reimbursements even though both companies already receive federal subsidies of about $765 a month per customer for extending their cell phone service to rural Hawaiian Home Lands.

BALANCE MAY DIP

If there's no change in the 66-cent fee in the future, the unspent balance in the fund is projected to dip to $18.2 million in 2010, assuming the board builds one cell tower this year and two per year thereafter.

Given the fund's large balance, board members need to recommend lowering the 66-cent fee and simultaneously draft a plan to spend $20 million or so in future years, said state Comptroller Russ Saito, who also serves as chairman of the Wireless Enhanced 911 Board.

"From my perspective, that would appear fiscally responsible to the Legislature," he told board members during a meeting earlier this month.

The board that oversees the fund is comprised of representatives from wireless carriers, state and city government, and local phone company Hawaiian Telcom.

The board is also considering using the surplus to buy equipment that allows emergency responders to locate wireless callers using Internet-based phone services. And there's an ongoing debate about whether the fund should pay for 911 call center equipment not directly used to locate wireless callers.

"The board is really struggling with that issue — where do its responsibilities end?" Kahue said.

Reach Sean Hao at shao@honoluluadvertiser.com.