Don’t you love farce?
My fault I fear.
I thought that you’d want what I want.
Sorry, my dear.
But where are the clowns?
Quick, send in the clowns.
Don’t bother, they’re here.
Although I learned a lot about higher education institutions and how they operate during my Flatwoods meeting with WVNET staff, my main purpose for meeting with them was to learn more about something they called “shared facilities.”
I learned pretty quickly that shared facilities were nothing more than circuits across which multiple organizations’ video, voice and data traveled. As part of an agreement with the previous Chief Technology Officer to create WVSUN (West Virginia State Unified Network), WVNET had taken primary responsibility for managing them. Most shared facility circuits, I learned, were a lot more expensive than institution circuits. In part this was because they were bigger, but also because most crossed two of the State’s four LATAs and thus had to be purchased from long distance providers. (See “A Baby Bell” for an explanation.)
After meeting with WVNET staff in Flatwoods, I quickly figured out we had three problems: one financial and two legal.
The financial problem:
After identifying all the “free circuits” Verizon had given away on behalf of the Cabinet Secretary of Education and Arts and the shared facility costs that had been shifted to her, even though we were missing hundreds of thousands of dollars in invoices, I realized we owed about $6.5 million on a three-year appropriation of $4.5 million, and that appropriation was supposed to be coming to an end. So we convened a meeting of key stakeholders, including the people who had circuits they weren’t using. We told them we would pay for everything we could, but looked to be significantly short of money. We also told them we would talk to legislators about the situation.
Shortly thereafter, we met with key legislators and staff members and explained the situation. Fortunately, the legislators promised to continue the appropriation until we could get our house in order, at which point the subsidy would slowly be phased out. I have always appreciated those legislators and their staff members who trusted us to make things right.
The legal problems:
In addition to the rather large financial problem, we had two not-insignificant legal problems of the constitutional variety.
First, it is unconstitutional to use a later year appropriation to pay for an earlier year service. (Otherwise, the constitutional requirement to operate under a balanced budget would be meaningless.) So a continuing appropriation couldn’t solve all of our rather large financial problems. Indeed the only way some of these telecommunications providers were going to get the money they were owed was to file a claim with the Court of Claims, obtain a judgment, and then have the Legislature make an appropriation, which easily could take two years.
Second, the Legislature had funded the WV2001 Project from lottery revenue, which constitutionally can be spent only on education, tourism and a few other things. But these shared facilities circuits included other telecommunications traffic for which payment would be unconstitutional. Interestingly, quite a few shared facilities invoices had been paid by the Department of Education and the Arts in violation of the West Virginia Constitution before I arrived there. Did anything happen as a result of this Constitutional violation? No! As a good friend likes to say: Some laws catch on better than others. I would add Constitutional provisions to his list.
Luckily, we were able to exploit our legal problems to address our financial problems. We, for instance, offered AT&T a payment equal to the percentage of traffic that legally could be paid for from lottery funds if they would walk away from the remainder of their (quite valid) claim.
And that is a large part of the story of how WVNET staff and others saved the State of West Virginia more than $1 million, much of which it admittedly never should have incurred, but almost all of which it owed. And that is why the West Virginia Department of Education and the Arts escaped the telecommunications billing debacle largely unscathed….
Don’t you love farce?… My fault I fear….
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