Citywide wireless Internet systems have been the hot new accessory for municipal officials for the past couple of years. As with other technology ventures, however, a rush to use city funds to pursue the latest technological fad has led to problems.
In late June, the Toledo, Ohio city council withheld approval of $2.16 million for a municipal wireless plan after city officials failed to explain exactly how the system would be financed. Those details, officials in Toledo Mayor Carty Finkbeiner’s office told the council, were on a PC that was locked in the office of the city’s former IT director, who had resigned just prior to the hearings, reportedly over policy differences with Finkbeiner.
Such municipal wireless mismanagement is by no means unique to Toledo. By withholding approval, the city council may have spared Toledo and its citizens from more financial headaches down the road.
Take the case of Lebanon, Ohio. In the 1990s the city decided to jump aboard the technology bandwagon. Instead of wireless Internet, city officials decided to begin operating a government-run cable, phone, and Internet system. This prompted a recall election and numerous lawsuits. It also wasted millions of dollars of city residents’ money.
Last year, realizing how badly their technology experiment was going, the city sold it to Cincinnati Bell.
Bad Idea
Of course, defenders of the Toledo plan will point out their proposed wireless system was different. It was to be owned by MetroFi, which was asking that, in return, the city promise to pay it a few million dollars for services it would use over the next five years. (See story, page 1.) The city itself would not own or operate the system.
That is true, but it does not change the fact that involving government in these technology schemes is a bad idea. For one, if the wireless system is such good technology, then why does the company need a large chunk of money from the city? Why can’t the company build the system and then, if its product is good, the city can simply purchase the capacity it needs?
Fortunately, some in the Toledo city government took seriously their job as guardians of taxpayer money and raised questions about the plan. This made Finkbeiner angry. Instead of realizing the lack of support might indicate municipal WiFi was a bad idea, he reportedly decided to attack other city officials for not doing enough to promote the plan.
Eventually, the mayor relented. He now says he will look for a plan that will not involve any taxpayer money.
The taxpayers of Toledo should breathe a sigh of relief. Other cities have not been so lucky.
Marc Kilmer ([email protected]) is a research associate specializing in technology issues with the Buckeye Institute for Public Policy Solutions, a research and educational institute in Columbus, Ohio.
