Volume 4, Number 6 June 2002

INSIDE THIS ISSUE E-Rate Update Rural Nebraskans Support Their Schools New Reports Provide Education Data Vermont School Choice Experiment May Negatively Affect Rural Schools and Communities Census Shows Gaps Between Rural, Urban Matters of Fact About RPM RPM Archives

E-Rate Update

In an attempt to streamline the "universal service schools and libraries program," generally known as the E-Rate program, the Federal Communications Commission (FCC) asked for public comment on many areas of the program's administration. The Education and Library Network Coalition (EdLiNC), a coalition representing schools and libraries around the nation, has gone to bat for an effective program to fund telecommunications use and infrastructure nationwide. The E-Rate program uses funds collected from telecommunications carriers to cover discounts offered to schools and libraries for their telecommunications infrastructure and services. Recognizing that the program has been an especially important asset for rural schools, the Rural School and Community Trust is a member of EdLiNC.

Briefly, here are some of the key positions taken by EdLiNC and the Rural Trust:

• Funding commitments to applicant schools or libraries which are left unused at the end of any fiscal year (i.e. the applicant did not complete a project) should be added to the next funding year's total, since the demand for discounts is running double the $2.5 million in available funds each year.
• Discounts should not be used to pay for Internet access that is "bundled" with content because the fundamental purpose of the E-Rate program is to fund telecommunications services, not content.
• Discounts should expand to cover funding for wireless services and voice mail used for educational purposes.
• Applicants should have the choice between paying the provider the full cost of the service, later claiming reimbursement from the provider through the E-Rate fund, or in the alternative, paying the provider only the discount price, leaving it to the provider to get the rest reimbursed from the fund.
• Providers or applicants who are willfully or repeatedly in noncompliance with program regulations should be suspended from participation.

The FCC will sort it out and issue an order addressing these and other issues. Meanwhile, schools and libraries are beginning to receive their funding commitment letters for Funding Year 2002-03. The estimated demand for telecommunications and Internet access for 2002-03 is $1.817 billion, while the estimated demand for internal connections totals $2.619 billion. Since a total of only $2.25 billion is available, it is likely that for the first time the fund may be unable to meet all requests for internal connections, even for applicants falling at the 90% discount level.