Publications

Fiscal Analysis of the "Link Michigan" Proposal

The “Link Michigan” proposal in troduced on November 29, 2001 included three bills. We reviewed these bills and evaluated the fiscal im pact on telecommunication providers and their customers; local government; and the state.

Our estimations are based on rigorous analysis of the actual bill, a comparison with current law, review of the available data from the MPSC, FCC, and other government sources, and a sophisticated simulation model.

Using conservative assumptions, we estimate the first-year impact of the proposal to be $4.4 million in new permit fess im posed on telecommunications providers and their customers, an increase of $5.8 million in reimbursements to local government for right-of-way; and $70.9 million in new right-of-way taxes. While permit fee revenue is forecasted to fall from its peak in the initial year, the revenue from reimbrusements and the right-of-way tax continues to grow over the following decade.

View PDF