Debate Continues Over Broadband Grant

By Matthew Avitabile

SCHOHARIE — In a split vote, the Schoharie County Board of Supervisors approved proceeding with a $30 million broadband expansion grant last month. The Empire State Development Grant funded by the ConnectALL office will be utilized by the County through Middleburgh Telephone to expand broadband coverage to currently under-served areas.

These included areas that Gilboa Town Supervisor Alicia Terry called the "hardest of the hardest" to serve. Overall, there are 499 current locations that could receive fresh coverage and about 4,000 additional homes that will likely receive higher internet speed. Conesville Town Supervisor and Schoharie County Board Chair Bill Federice said at a recent Conesville Town Board meeting that he was wary about the terms of the grant. This included the county administering the broadband service directly for the next ten years. He cited the streambank project following Hurricane Irene in 2011 and the slow process of reimbursement for work done. He also stated that some of the areas currently under-served are inhabited by the Amish.

Blenheim Town Supervisor Don Airey cited similar concerns as Federice at the County's meeting last month, in which the Supervisors narrowly approved moving forward with the project. Airey called the situation "really, really hazardous."

These concerns were further echoed by Seward Town Supervisor Earlin Rosa.

On the other hand, Schoharie Town Supervisor Ben Oevering said that hamlets such as Central Bridge could be "completely revitalized" by the effort.

Schoharie County Economic Enterprise Corporation (SEEC) Director Julie Pacette said that her organization "is a very strong advocate of the broadband build. We believe the Connect ALL office has been certain in its stand that the Municipal Infrastructure Program dollars will flow to the County, if contracted. The County has put a talented team in place to deliver - County Economic Development focus, MIDTEL, FARR Technologies and Municipal Solutions leading the way to ensure no stone unturned to provide this extraordinary opportunity that our generations to come will appreciate.”

She said that a Schoharie County-commissioned report stated that “broadband should improve health outcomes, educational outcomes, strengthen small business, industry, innovation and present new opportunities for residents. In addition, direct county benefits will result in a boost to sales tax and real property values which, in turn, contributes to wealth building for property owners.”

“Country Boy Realty, Matt Loder, claims real property values jumped 41% in the last 4 years which would have been unlikely should the real estate not have had access to high speed internet. Matt credited MIDTEL and its previous build throughout the south towns of Schoharie County for this added value,” she said.

“Think educational outcomes. We can’t help but think Middleburgh Central School District went from a school in need to Top 10 of the Capital District post COVID. With the #1 NYS principal at the helm, the school has the most devices and best highspeed internet access compared to the other school districts of Schoharie County. As you know, a Village and Town that HUD reports as low-moderate income, 60.35% and 61.36% respectively, Middleburgh just outpaced other areas for the ranking. Perhaps, a direct correlation to the efforts of MIDTEL in its broadband build leveraging previous State and Federal grant programs,” said Pacatte.

The SEEC Director said that expanding access to 100% of resident would “put Schoharie County in the top 3% nationwide” and said that such a move would be a “game-change.”

“Bundle that extraordinary access with digital literacy coalition underway and a new Tech EcoSystem strategy for economic development, Schoharie County is powering-up a Digital Revolution. A revolution of innovation and entrepreneurship reaching each corner of the County that encourages the working landscapes to remain, Main Streets to blossom and hyperfocus on industrial development along the I-88 corridor,” she said.

“I was opposed to this project on several levels, but I put that aside and I committed to support this initiative if we could make it happen without exposing the county. I still feel that way. But to do so with what we know or more accurately what we do not know is reckless. I am sorry if that word offends some people, but it truly applies,” said Federice.

“Right now, we have no guarantee we will receive the funds other than speculation from contractors and NGO’s with zero risk to themselves that we will get the grant dollars. Are we willing to start a $30 million project based on that? Speaking for myself, I cannot believe we would take these risks with our citizens’ dollars. Let us look at the current charged political environment,” he said.

He also cited recent changes to federal grant programs from the Trump Administration and cited 'Equity' as a major driver behind the project. He said that the current federal government "disdains DEI [Diversity, Equity, Inclusion] Policy and is in the process of eliminating anything to do with DEI."

“The likelihood of prolonged litigation adds a layer of unpredictability, making it even more imprudent to proceed at this time,” he added.

“Yet, despite this legal environment, we are being asked to approve a $30 million venture with the hope we will get the grant dollars from those who are not in any position to make that happen without closure by the courts. We have several prognosticators who say not to worry. We will get the funding. Really? I prefer to rely on what the courts will say instead of those who stand to benefit,” he said.

“There are just too many unknown variables at this stage, and proceeding without a full understanding of the potential financial implications could be disastrous. While the project aims to enhance connectivity and bridge digital divides, we must weigh these benefits against the considerable risks of financial instability and legal entanglements. The lack of a clear binding agreement with Empire State Development further exacerbates this precarious situation. Moreover, we must remember that embarking on a project of this magnitude without firm assurances and concrete agreements is dangerous. We risk not only fiscal irresponsibility but also eroding the trust and confidence our constituents placed in us when they voted for us to represent their interests,” he said.

“I know several of us are excited about the prospect of what is being referred to as the last mile for broadband. That is understandable. But we as county leaders need to look out for the interests of all our citizens who frankly have demonstrated little enthusiasm for this project. After all, it is their money. Not ours,” added Federice.