ERATE Internet Aid to Schools Flowing Again

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  ERATE History
http://www.edu-cyberpg.com/Teachers/E-rate.html

Tuesday, November 23, 2004; 7:28 PM
WASHINGTON - The program that helps link schools and libraries to the
Internet has resumed spending after a cash-flow crunch that delayed more
than $400 million in projects.
The E-Rate program has ended a four-month-long moratorium on new projects,
federal officials said Tuesday, but it will take time to clear a backlog of
more than 4,000 requests.
The $2.25 billion-a-year program is credited with getting high-speed Internet
access to people in poor and remote locations through discounts on connection
gear and phone service.
http://www.washingtonpost.com/ac2/wp-dyn/A8433-2004Nov23

E-RATE FUNDS FLOW AGAIN, CONCERNS LINGER
Following a nearly four-month suspension of E-Rate Program payments,
the federal organization that administers such payments has restarted
issuing letters promising funds to schools and libraries around the
country. The E-Rate Program has come under intense scrutiny for alleged
fraud and abuse, and in August, government officials halted payments
under the program based on revised accounting requirements. A number of
school systems and libraries depend on E-Rate funds to provide basic
computer services and connectivity, and at least one school district in
Alaska shut down Internet service this summer because of concern that
the E-Rate funds would end. Under the new rules, E-Rate letters cannot
be sent until the funds they promise have been collected. The former
system allowed letters to be sent after applications were approved,
prior to collection of the funds, because the monies would not be
disbursed for 12 to 18 months. The new regulation has resulted in a
logjam in sending commitment letters and funds. Efforts in Congress
have thus far failed to streamline the process.
CNET, 23 November 2004
http://news.com.com/2100-1037_3-5464987.html


E-rate funding restarts, but crisis continues
By Marguerite Reardon
<http://news.com.com/E-rate+funding+restarts%2C+but+crisis+continues/2100-10
37_3-5464987.html>

Story last modified Tue Nov 23 14:23:00 PST 2004
After a nearly four-month hiatus, funding for the federal E-rate program
resumed Monday, but the program is still in trouble as new accounting rules
threaten to paralyze the financing process.

On Monday, the Universal Service Administrative Company (USAC), the
not-for-profit organization that administers E-rate funds on behalf of the
Federal Communications Commission, issued 198 letters to schools and libraries,
promising funding that totals $23.4 million, said Mel Blackwell, vice
president of
external communications for the group. Additional letters will be issued once
more funds have been collected, he added.
<http://news.com.com/E-rate+funding+restarts%2C+but+crisis+conti>


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