FCC makes effort to eliminate waste and fraud in the E-rate program
In an effort to eliminate waste and fraud in the “E-rate program,” which provides discounts for connecting schools to the Internet, the Federal Communications Commission (FCC) has voted to impose stiffer penalties on companies, school districts, and individuals who engage in misconduct or are convicted of criminal violations. It has also stated that it will no longer fund requests for duplicative services. FCC plans to hold hearings next month to explore additional anti-fraud measures. However, it has loosened other E-rate rules affecting schools. Specifically, funds may now be used to pay for telephone voicemail so that teachers can respond more easily to calls from parents. The new regulations will also allow money to be spent on emerging wireless technologies such as wireless computer networking and cellular phones for workers who need to move around on school grounds.
Los Angeles Times
By Jube Shiver, Jr.
Full story: http://www.latimes.com/business/printedition/la-fi-fcc24apr24,1,6915991.story?coll=la%2Dheadlines%2Dpe%2Dbusiness
[Editor’s Note: In its first four years, the E-rate program has provided $8.25 billion of discounts on technology, ranging from 20% to 90%, to public and private schools and libraries. Internal auditing by the nonprofit that manages the program, the Universal Service Administrative Company (USAC), has unearthed some errors and abuses. These include instances when school districts collaborated too closely on their program applications with the vendors that would provide the technology if the applications were approved. According to NSBA’s Advocacy Staff, the problems have prompted some in Congress to consider eliminating this important program or funding it not through a revolving fund, as currently, but with annual appropriations, which would have to compete with every other federal funding priority. Applications for E-rate discounts far exceed the annual, aggregate limit on discounts of $2.25 billion. Stay tuned.]
FCC news release: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-233530A1.doc
FCC fact sheet: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-233530A2.doc