FCC Licensees 'Will Bear the Brunt' of Agency HQ Move, Official To Testify
“Operational demands” have driven up the FCC’s budget request, which is $388 million for FY 2016, agency Managing Director Jon Wilkins plans to testify Wednesday before the House Communications Subcommittee. “For FY 16, the Commission has been forced to adjust…
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its costs upward to manage and execute activities leading to the termination of our headquarters lease in 2017,” Wilkins says in his written testimony. “Over 70 percent of our requested increase supports ‘unavoidable’ costs such as the restacking and move, inflationary increases, and the OIG [Office of Inspector General] base increase.” The hearing, scheduled for 10:30 a.m. in 2322 Rayburn, is focused on FCC reauthorization. Wilkins will argue that the FCC headquarters transition is “an opportunity to create greater cost savings and efficiencies by significantly reducing the Commission's footprint and instituting new management techniques that encourage greater use of shared space,” saving “over $100 million over the life of our new post-2017 lease.” He will say FCC licensees “will bear the brunt of the move” and that the agency is attempting to “assess fees in a fair and equitable manner,” and will defend the agency as fiscally responsible. This FY 2016 budget will “properly align USF expenditures with cost outlays,” thereby “shifting USF funds to cover our salary and compensation expenditures directly related to USF activities,” he will testify. He plans to discuss the “tough budget decisions” the FCC faced as a result of receiving $36 million less than requested last year. “Flat funding has led to staff reductions,” he will say, also warning of big information technology challenges given the agency’s aging systems. “Limited funds have delayed many improvements and threaten to cost us more each day that we are unable to move ahead.”