TRS Fund Need Projected to Rise 23% to $1.6 Billion, With 3% Contribution Factor
Rolka Loube Associates projected the FCC telecom relay service fund needs $1.62 billion in net cash for FY 2019 starting July 1 (up 23 percent from $1.32 billion in FY 2018), and an industry contribution factor of 3 percent (up…
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from 2.3 percent), said filings by the TRS fund administrator posted Monday in docket 10-51. It projected total demand of almost $1.8 billion from the six relay services and additional requirements: $5.4 million for interstate traditional TRS, $7.8 million for interstate captioned telephone service, $713,429 for interstate speech-to-speech (including outreach), $495 million for video relay service, $7.9 million for IP relay service, $998.7 million for IP captioned telephone service and $279.9 million in "non-provider" requirements. The latter include an FCC-mandated two-month budgetary reserve of $252.6 million for FY 2019, $10 million for a deaf-blind equipment distribution program, $8.65 million for TRS research, and smaller administrative and other expenses. The projected net cash need was lowered by offsets from the projected $172.2 million surplus as of June 30 (from a current reserve) and $1.2 million in estimated interest on invested funds. Rolka Loube said the best available estimate is that the relevant annual interstate and international telecom end user (minus reseller) revenue base will be $53.5 billion (down from $58 billion); that, combined with the $1.62 billion cash need, produces the 3 percent projected contribution factor, which most providers pass on to consumers on phone bills.