Use of E-Rate Funds Still Lags
Schools, libraries aren't taking advantage of federal tech discounts
By Kathy Ishizuka -- School Library Journal, 4/1/2004
Why aren't qualified schools and libraries cashing in? Some schools might be forced to abandon technology projects due to changing budget allocations, while others may have overestimated the amount of money needed to pay for their technology needs. And some may have lost track of the required paperwork necessary to receive payment, says Sara Fitzgerald of Funds For Learning, which conducted the study.
Another reason may be the close scrutiny program applicants and vendors have received following recent allegations of waste and fraud within the program, says Fitzgerald. For example, vendors who provide services to schools must now document the technology that was installed, further delaying the disbursement process. To date, only 9.2 percent of approved e-rate funds have been distributed for 2003 and 57.9 percent for 2002.
The study also finds huge differences in the percentage of e-rate funds that states spend. For instance, applicants in Kentucky, Michigan, and Hawaii only spent 45 percent of their approved discounts in 2002, while Alaska, Wisconsin, Colorado, and Montana spent more than 71 percent of their approved discounts. Della Mathis, an e-rate coordinator for Alaska explains that in "small rural schools and libraries with limited staff, it's difficult to keep up with the e-rate paperwork and properly utilize e-rate discounts."
