USAC TO RESUME ISSUING FUNDING COMMITMENT DECISION LETTERS

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USAC TO RESUME ISSUING FUNDING COMMITMENT DECISION LETTERS
In early August, the Universal Service Administrative Company (USAC)
suspended issuance of Funding Commitment Decision Letters (FCDLs) for both
schools and libraries and rural health care providers for all funding
years. USAC has worked closely with the FCC since then and has now
determined the amount of unobligated cash it has available to cover new
commitments and will resume issuing new FCDLs within the next two weeks. In
issuing FCDLs, USAC will follow the prioritization principles posted on
this web site on October 27 (see
http://www.universalservice.org/new/2004.asp#102704).

Note that available
funds are calculated separately for each support mechanism.  Generally,
commitments will be issued for applications and meritorious appeals for
funding years prior to Funding Year 2004 first and then, for Funding Year
2004, requests for telecommunications services and Internet access
(Priority 1) first and, for schools and libraries, internal connections
second. If funds are not sufficient for all pending requests within one
priority, requests will be funded based on the date the application review
was completed.

USAC expects to have sufficient funds to make commitments on
all pending Rural Health Care requests that have completed review and
generally to be able to issue FCDLs on other pending applications as review
is completed.  With respect to the Schools and Libraries mechanism, USAC
expects to issue FCDLs for all applications for funding years prior to 2004
that have completed review and to have sufficient funds to make commitments
for Priority 1 services on some portion of the applications that have
completed review based on the date of completion. As additional funds
become available through contributions to the Universal Service Fund and
through "deobligation" of previously committed funds (for example, funds
committed for recurring services for Funding Year 2003 and not invoiced by
October 28, 2004), USAC will make additional commitments -- first for
prior-year applications and appeals and then for Priority 1 requests on
applications for 2004. Commitments for prior years will be made as they
become ready. For Funding Year 2004, USAC expects to issue periodic "waves"
of commitments. USAC cannot predict the exact timing at this time, but
expects at least one such wave a month.
[SOURCE: Universal Service Administrative Company]
http://www.universalservice.org/new/2004.asp#110304

BENTON'S COMMUNICATIONS-RELATED HEADLINES for NOVEMBER 4, 2004

--

The FCC what now...when, and how?

Rumors have been circulating for more than a year that FCC Chairman Michael
Powell would be leaving the Commission.  His departure would have been
automatic had Senator John Kerry (D-MA) been elected president.  In=20
recent  months,
however, Powell has been sending mixed signals of his intentions if Bush =
 was
reelected.

Powell has long been rumored to want a top job in  the U.S. Department of
Justice. Reportedly, the White House seems to be  disappointed in=20
Powell=E2=80=99s tenure
as chairman.  Meanwhile, FCC Commissioner  Kevin Martin has made no secret=
 of
his desire to be FCC chairman in a second  Bush term.  Martin has indicated
he would prefer leaving the FCC unless he  is appointed Chairman.

If Kerry had been elected president,  he was expected to name Commissioner
Michael Copps as chairman and Greg  Rothschild, a former Kerry staffer who=
 now
works as counsel for the House of  Representatives Energy and Commerce
Committee, to the Commission.

In addition to Martin, the short list for new chairman in a second  Bush
term, if Powell does not continue, is thought to include Becky Klein,=20
the  former
chair of the Texas Public Utilities Commission.  Current FCC  Commissioner
Kathleen Abernathy also has been mentioned as a possible  replacement for=20
Powell.

The election results, however, could put  Adelstein=E2=80=99s reappointment=
 to the
FCC particularly in question.  Adelstein,  a strong advocate for rural
telecommunications interests, has indicated his  interest in being=20
reappointed to the
FCC.  Adelstein was first nominated  with strong support from Daschle, the
Democratic minority leader, who went down  to defeat this week.  Adelstein=
=20
was a
former member of Daschle=E2=80=99s  staff.  The Democratic minority leader=
 can=20
play a
critical role in the  nomination of the two Democratic commissioners, but=
 Bush
is not bound to accept  the nominations of the Democratic minority leader.
Perhaps the new  promised outreach will allow him to do this.

Daschle is likely to  be succeeded as minority leader by Senator Harry Reid
(D-NV), who won reelection  this week by a significant majority.  Initial
thinking is that Reid may be  more confrontational than Daschle, who often
preferred working behind the scenes  to reach consensus with his colleagues=
=20
on both
sides.  Reid has not been  particularly active in telecommunications issues.
However, Adelstein=E2=80=99s  initial nomination was highly controversial. =
 His
confirmation by the  Senate was held up in a dispute between the White=20
House and
Senate Democrats  over controversial judicial nominations.   He is not=20
thought to
have  strong support within the Senate, especially now with the defeat of
Daschle and  the decision by Senator Ernest Hollings (D-SC), the ranking=20
member of
the Senate  Committee on Commerce, to not seek reelection this year.

Who will then  represents those who understand the lay of the land for
schools, is hard to  know.
WHAT HAPPENED?


As a result of the Antideficiency Act,  funding to E-rate and rural health
care program recipients was suspended in  August, 2004 leaving many schools,
libraries, and rural health care providers  without expected support.  Many
schools have complained the decision came  at a time when schools were=20
beginning to
open for the year forcing many school  systems to cut programs to use those
funds instead of USF money to pay vendors  for newly installed computer
systems. Initially, Powell blamed the Office of  Management and Budget=20
(OMB) in the
White House for mandating application of the  Antideficiency Act.  OMB,
however, passed responsibility back to  Powell.  Several of the other FCC
Commissioners criticized Powell for not  even informing them of the=20
decision.  Powell
also refused to testify at a  Senate hearing last month to explain his=20
decision.

MORE  DISRUPTIONS?????????????????????????????

There is also growing concern that the Anti-Deficiency Act could also be
applied  shortly to the USF high cost program and lead to disruptions in=20
payments
to  recipients of high cost program USF money similar to the disruptions
experienced  by recipients of the E-rate and rural health care=20
programs.  Questions
also  have been raised whether USF can be separated from the U.S. Treasury
and whether  USF can retain interest income generated on investment of funds
held before  disbursement in the ordinary course of USF operations.  If USF=
=20
funds
are  considered part of the U.S. Treasury, they can be used on paper to
reduce the  size of the federal deficit.

FUNDS
There are significant similarities  between the high cost program and the
E-rate program that prompt concern that  the Antideficiency Act and the new
accounting rules may be applied to the high  cost program.  Just like=20
schools and
librarires, recipients of high cost  USF funds file projected demand with=20
USAC.
  USAC then files a report  outlining the amount of funding it anticipates
disbursing to each individual  carrier receiving high cost funds.  Just=20
like the
schools and libraries,  recipients of high cost funds expect to receive the
amount designated in the  projections if they follow all of the rules.

Stay  tuned

Bonnie Bracey
http://www.edu-cyberpg.com/ringleaders/bonnie.html


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