Paralyzed Municipalities: The "Chilling Effect" of Municipal ICT Investments: A Case Study of the Legan and Policy Environment for South Carolina Municipal Investment in Advanced ICT
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This paper provides a case study of existing policy barriers to local municipal information
communications technology investments in one U.S. state, South Carolina. This analysis also
describes local survey results to clarify the role of restrictive state policy on the incentives for
local communities to make these investments. Initial interviews of state municipal leaders support
the idea that the states legal interpretation of municipal responsibilities has likely constrained
local telecommunications investments across the state. Survey results reveal that approximately
one-third of local municipal leaders believe they are constrained by the state’s definition of the
purview of municipal responsibilities. Even with these constraints, the overwhelming majority of
respondents acknowledge the importance of these investments for community and economic
development. Understanding the results of state barriers to telecommunications investment
provides important insight into the nature of policy incentives and moreover, provides insight into
how states and localities can change policy to encourage these investments.