USAC Publishes Budget Control Mechanism Data For 2021 – 8.6% Adjustment Factor For 2021-2022
May 3, 2021 – The Universal Service Administrative Company (USAC) has published budget control mechanism data that applies to rate-of-return ILECs subject to cost-based universal service support rules.
For July 1, 2021, through June 30, 2022, the budget control adjustment factor will be 8.5814 percent. For comparison, the budget control adjustment factor for last period was 3 percent.
The forecasted total amount of high cost loop support (HCLS) and Connect America Fund Broadband Loop Support (CAF BLS) for 2021-2022 is $1,296,036,131. The budget for the HCLS and CAF BLS support mechanisms for 2021-2022 is $1,184,817,248. The difference between the forecasted amount and the budget is $111.2 million.
The ratio of the budget and total forecasted amount is .9141854 (91%). This results in a budget control adjustment factor of .0858146 (8.5814%).
A spreadsheet showing the projected reductions for each rate-of-return carrier is available on USAC’s budget control mechanism website.
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