NSBA's Letter to Senate Commerce Committee: June 21, 2006
June 21, 2006
The Honorable Ted Stevens
Chair, Committee on Commerce, Science & Transportation
United States Senate
522 Hart Senate Office Building
Washington, DC 20510-0201
The Honorable Daniel Inouye
Ranking Member, Committee on Commerce, Science & Transportation
United States Senate
722 Hart Senate Office Building
Washington, DC 20510-0201
Re: Mark-up of S.2686, Communications, Consumers’ Choice, and Broadband Deployment Act of 2006
Dear Chairman Stevens and Ranking Member Inouye:
On behalf of the National School Boards Association (NSBA), which represents the nation’s 95,000 local school board members, I would like to express our support for Sections 211 and 259 of the Consumers’ Choice, and Broadband Deployment Act of 2006, which contain important provisions affecting the E-rate program, and alert you to possible amendments, which would be harmful to the program. We respectfully request that this letter be included in the official record for the committee mark-up of the bill scheduled for June 22, 2006.
As you know, E-rate provides significant discounts to schools and libraries to help build technology infrastructure and provide telecommunications and Internet services for students in rural and low-income areas. The program is a vital source of assistance for schools in maintaining Internet connectivity, bringing new learning opportunities to special education students, and enhancing distance-learning in rural areas. Since its creation in 1996, public school classroom connectivity has jumped from 3% to 93%, and access levels for low-income, minority and rural schools now stand at 90% or above.
While the program has been a tremendous success, much more can be done to address the technology gaps that remain, to ensure efficient operation and integrity of the program, and to increase the quality and speed of connectivity in our nation’s schools. Sections 211 and 259 of the Communications, Consumers’ Choice, and Broadband Deployment Act of 2006 include language, which makes significant steps in addressing these concerns.
Section 211
Specifically, NSBA applauds the inclusion of language in Section 211 of the bill to stabilize the Universal Service Fund (USF), by requiring that every provider of a telecommunications service, broadband services or, IP-enabled voice services (VOIP) pay into the fund. This language is essential to ensuring the future viability of E-rate and all Universal Service programs, since the
emergence of new technologies in recent years has limited the existing market base of contributors to the fund.
NSBA is also pleased that the legislation provides a permanent exemption for USF contributions from the Anti-Deficiency Act (ADA). As you know, schools and libraries have not been able to rely on the timely notification of E-rate funding commitments in recent years due to an FCC decision to subject the program to ADA requirements. This decision effectively caused program administrators to shut down the program from July-November 2004, hobbling the school technology program. Thousands of schools and libraries were left uncertain as to whether they could expect E-Rate support for the year and many schools were forced to cut off Internet service to their students. We appreciate the inclusion of this critical provision in the legislation so that this tragic scenario is not repeated in the future.
Section 259
NSBA is encouraged by language in Section 259 of the bill to ensure greater integrity and accountability of Universal Service programs. NSBA believes that such measures are essential to ensuring future support for and success of the E-rate program. Specifically, the bill would develop processes for measuring the progress of schools and libraries toward achieving their individual connectivity goals. Such performance measures reflect the Universal Service support mechanism's longstanding mission to provide schools and libraries with access to an evolving level of advanced communications services while acknowledging schools' and libraries' unique, individual telecommunications requirements, which vary greatly by state, school or library. We respectfully recommend, however, that the committee clarify the language in (2)(D)(i) of this section to ensure that the collection of these data can be incorporated as part of the existing application process and will not be overly burdensome on schools.
NSBA agrees that there should be strong and appropriate sanctions for those who knowingly and repeatedly violate program rules, and believes that the inclusion of this language in the bill will help to ensure the integrity of the E-rate program. It should be noted, however, that a few publicized incidents of fraud and abuse on the part of unscrupulous individuals should not be used to discredit the entire program. Of the more than 200 audits that the Universal Service Administrative Company (USAC) has performed to ensure the program’s integrity, less that one percent (0.67 percent) of E-Rate funds were subject to recovery for program violations. In fact, the FCC acknowledged in its notice of proposed rulemaking on June 14, 2005, that the “recommended recovery amounts are small in comparison to the more than $31 billion in funds dispersed [for all Universal Service programs] since 1997, demonstrating that the great majority of E-Rate, High Cost, Low Income, and Rural Health Care program recipients follow our rules and have not engaged in fraud.”
Harmful Amendments
NSBA opposes any amendments offered under the guise of preventing fraud and abuse that are aimed solely at embarrassing the E-rate program and discrediting the efforts of local school districts to provide connectivity to their students. Such publicity stunts do not address the real issue of ensuring integrity and accountability in the program (which this bill addresses), and only stand to undermine the future success of E-rate for our students.
In addition, NSBA opposes any efforts to limit E-rate support to schools and libraries that are currently eligible for funding under this program. These efforts are contrary to the mission of the program, which seeks to provide broad support and access to low-income and rural schools for internal connections and broadband services. Restricting program eligibility to only the very poorest applicants—those with more than 90% of their students on free and reduced lunch—would rule out nearly all rural schools, libraries and private schools from receiving internal connections support. Additionally, limiting program funding to only broadband service and would make it impossible for lower income applicants and those residing in rural communities that lack access to broadband services to participate in the program.
We urge the committee to be skeptical of any attempts to block grant USF programs to states through the creation of a pilot program. A move toward state administration of universal service would leave the allocation of program funds open to state politics rather than economic need or geography, and could erode funding over time. Furthermore, it would unnecessarily pit USF programs against each other, forcing the school and library community to compete with other rural and health care constituencies that receive support from the fund.
Finally, NSBA opposes any efforts to cap the USF fund. Such an act would limit telecommunications services by not accounting for realistic increases in the costs of technology or inflation. Limiting the contributions from telecommunications carriers into the fund would reduce Congress’ commitment to expanding access to and availability of advanced telecommunication services to underserved communities, particularly those in low-income, rural, and high cost areas.
On behalf of school board members across the country, NSBA thanks you for your support of and commitment to America’s schoolchildren. We appreciate your leadership and look forward to working with you to ensure that these E-rate provisions are retained and that harmful amendments are not added to the bill as it continues through the legislative process.
If you have questions or would like additional information, please contact Chrisanne Gayl, Director of Federal Programs, at 703-838-6763; or by e-mail, cgayl@nsba.org.
Sincerely,
Michael A. Resnick
Associate Executive Director