Meeting Date: February 17, 2003
Place: Public Service Commission Building, Madison, WI

Universal Service Fund Council (USFC) members present at the PSC or via teleconference:
Dan Matson (Council Chair) - Verizon; Mari Freiberg - WPHCA; Pam Holmes - Ultratech; Paul Rux - Paul Rux Associates; Richard Schlimm - WISCAP; Gwen Jackson - Red Cross;
Jeff Beck - Americable; Robert Debroux - TDS Telecom.

USFC members absent and not represented:
Tom Frazier - WI. Aging Groups; Helen Gee - Community Advocates; Fred Weier -Tri-County Tel. Cooperative.

PSC personnel participating:
Dan Ebert; Anita Sprenger; Jeff Richter, Joyce Mahan; Gary Evenson.

Other persons present: None

Introductions
The meeting began at 9:10 a.m. A quorum was present (8 of 11).

The minutes from the February 7, 2003 meeting were approved.

Chairman Matson noted that the Council meeting was called to discuss the draft letter from the USF Council regarding use of USF dollars for state FY03 budget shortfalls. Dan Matson reported that Dan Ebert, Executive Assistant to the PSC Chairperson requested that he be able to meet with the Council regarding the draft letter.

Dan Ebert addressed the Council and stated that he had been assured by the staff working on the budget that the PSC USF will not be affected by the $3 million referred to for the FY03 shortfall budget adjustment. He does not have the details regarding the USF budget yet and will be getting that from DOA in the afternoon. He has been assured that the majority of the funds are from a significant balance in the TEACH program from the previous fiscal year. He hopes to confirm that and inform the Council of any future budget impacts on the PSC USF budget soon.

The Council agreed to delay its decision on sending the letter until facts about the budget are available. Dan Ebert will try to get those to the Council via Anita Sprenger as soon as possible. Several Council members still expressed concern that PSC USF dollars have been transferred to the general fund in the past and that it might be prudent to send a letter expressing Council concern at some point. It was noted that the previous transfers were done in a previous administration. Pam Holmes mentioned that Rep. Erpenbach had briefly mentioned the USF budget in a visit to Ultratec, but no details were discussed since that was not the purpose of the meeting. Dick Schlimm also mentioned that he had heard about a motion that passed in Joint Finance to increase the $3 million of USF dollars by another $239,000. Anita said she would follow up on this to see what dollars were being referred to in that amendment.

Future USF Council Activities
The Council may have to schedule another brief meeting to decide on what action the Council will take with the letter. The next full Council meeting will likely be in March/April. Council members will be contacted via e-mail regarding schedules for the next meeting.

The meeting adjourned at 9:35 a.m.