Missouri PSC Mulls State USF Future

level. The PSC asked if the fund, which today supports only voice landline Lifeline service, should support a broadband-only service and if it should provide a high-cost service. It asked if it should use different assumptions to project state USF revenue and expenses. Killing the state USF is on the table, too, said the agency: “Should the Missouri USF be eliminated? If yes, how and when should it be done? What should be done with any unused funds?” In an accompanying memo, staff said changes in consumer behavior and federal developments necessitate a revamp of the state USF. "The number of participants in programs supported by the Missouri USF has declined, primarily due to a shift in consumer preferences to wireless service,” staff said. “Federal Lifeline program reforms are shifting federal support to only support a broadband service.” The Missouri USF fund balance is $2.45 million and has slowly declined since October 2014, staff said. The state requires companies to contribute 0.0010 times their net jurisdictional revenue, it said. Despite repeated reductions in contribution amounts to the state USF, the Missouri fund could be financially viable through 2023 even if the assessment was eliminated, staff said. Comments are due May 1. Revenue from contributions to state USFs has declined in multiple jurisdictions, our report last year found (see 1607010010).