2011 Budget Overview

Working with staff and the Advisory Councils, the Internet2 Board of Trustees developed and approved a financial plan for 2011 that continues the trend established in 2010 of generating revenues in excess of expenses while building cash reserves to support the successful implementation of the BTOP network enhancement project. In addition, the financial plan reflects the ongoing shifting of resources within the organization to meet the ever-changing priorities of the Internet2 community. To learn more, see the 2011 Budget Presentation (PDF, 1.1 MB), which provides more information regarding Internet2's financial position and budget expectations.

As we continue to operate in these extremely challenging economic times, Internet2 is especially focused on providing value to its members. Staff is working with the Board and Advisory Councils to leverage past investments by members in advanced networking to provide new and more cost-effective services and capabilities. With the establishment of updated Community Strategic Priorities, provided to staff by the Advisory Councils and the Board, the Internet2 staff is working to carefully redirect and conserve resources to meet these important seven strategic areas of focus. (In no particular order.)

  • Advanced network and network services leadership
  • Net+ (services "above the network")
  • U.S. UCAN
  • National/Regional collaboration
  • Global reach and leadership
  • Research community development and engagement
  • Industry partnership development and engagement
Questions and comments from Internet2 members are welcome and should be directed to info@internet2.edu.


Frequently Asked Questions

Does Internet2 plan on raising dues or participation fees for service in the coming year, 2012?

No. Internet2 dues and participation fees will continue at current levels through 2012. In fact, member dues and fees have been held flat—or lowered—since 2009.

How can viewers of Internet2's financial information have confidence that the information is accurate?

Internet2's Board of Trustees hires Ernst and Young, LLP, a prominent, independent auditing firm, to review Internet2 financial records and report on the accuracy of the information provided by Internet2 management. Ernst and Young, LLP, audits the information according to "Generally Accepted Accounting Principles" (GAAP), and according to Federal Government A-133 standards. Ernst and Young, LLP, found Internet2's financial records to be both complete and accurate, providing a fair and representative picture of the financial health of the organization.

The latest budget presentation refers to accumulating cash for a "BTOP Grant." What is the BTOP grant, and why must Internet2 build cash reserves?

The National Telecommunications and Information Administration (NTIA), an agency within the Commerce Department of the Federal Government, established a grant program in 2009 called the Broadband Technology Opportunities Program (BTOP), for the purpose of expanding broadband capacity in the United States to unserved or underserved areas and for enhancing broadband capacity. The NTIA and some other agencies distributed $7.1 billion to broadband projects across the country, based on a set of rigorous guidelines.

Internet2, on June 30, 2010, was awarded $62.5 million to upgrade and extend the national backbone network it operates. The overall project is about $96 million and Internet2, as the primary award winner on this project, must arrange for the contribution of private matching funds and equipment to make up the difference between the project amount and the grant amount—about $33.5 million. Though there are other organizations contributing private funds to Internet2 for the purpose of making up this difference, Internet2 must also generate and contribute funds to the project. Internet2 committed a specific amount of cash to be generated from operations over a three-year period, and is on track to generate and reserve the targeted cash amount.

The BTOP project isn't Internet2's only priority within the research and education community. How does Internet2's budget reflect investment to meet other strategic objectives?

Internet2 has identified seven strategic objectives (see list above) for the next two to three years, beginning in 2011. The objectives are aligned with the appropriate functional programmatic areas within the Internet2 organization. Each of these functional areas reflects increased investment in 2011. To learn more, see the 2011 Budget Presentation (PDF, 1.1 MB).

Getting the U.S. UCAN initiative going is one of Internet2's strategic priorities. How much is Internet2 spending on this effort?

The amount will vary over the next couple of years. The Internet2 community has been actively involved with community anchor institutions (CAI's) for several years through the K-20 and Health Services programs, to name just two. CAI's are also the entities to be served through U.S. UCAN. Internet2 is dedicating effort from these existing programs and others to support the U.S. UCAN startup, as well as investing new funds to the effort, as circumstances warrant. Eventually, U.S. UCAN will need to be self-supporting and will expand subject to resources raised. For more information, please see usucan.org.

What does the financial future look like for Internet2?

The future looks bright for Internet2 and the mission of the Internet2 community. Internet2 has been holding member dues and fees flat—or has lowered them—since 2009, and will continue to keep dues and fees low into 2012. Internet2 has been able to accomplish this because of the savings provided by programs and services developed over the years and offered to members. Delivering value to members has allowed the various programs and services to grow, providing more internal support to strategic community objectives.

In addition, Internet2 works hard to keep overall administrative costs low, dedicating as many resources as possible to the community's programs. See the 2011 Budget Presentation (PDF, 1.1 MB), page 7.

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