Tuesday, April 25, 2017

Should Taxpayers Continue to Give $2 Billion a Year to Fund Online Access in Public Schools?

By Dax Bradley
A University of Chicago study examined the impact of an E-Rate program and found that the number of poor schools going online had increased dramatically.  However, the study found no evidence that the program had any effect on students’ performance on the Stanford Achievement Test.  Should this be sufficient evidence to discontinue this program, which costs U.S. taxpayers roughly $2 billion per year?


The annual spending per student has seen a decline in recent years.  Balanced-budget rules have forced spending cuts to education in most states ("School Spending per Student Drops for Third Straight Year," 2016), which puts educators in the difficult position of determining how to spend the funds that are available.  The E-Rate program, provided through the Telecommunications Act of 1996, earmarked $2.25 billion to provide schools funds for upgrading their access to Internet resources (Reynolds, 2012, p. 325).

The problems unearthed by the press and by a Federal investigation highlight some very serious issues.  Among the discoveries outlined by House Representative James Greenwood (House Hearing: E-Rate Program: Waste, Fraud, and Abuse, 2004):
·         In Puerto Rico $28 million worth of improperly stored and stockpiled equipment
·         $58 million network equipment sitting unused
·         NEC allegedly rigged millions of US dollars in bids in several states
·         $101 million for setting up high-speed Internet yielded two computers per school, using dialup
·         $31 million paid for high-speed Internet access which went unused
·         Consultants paid high fees without doing any work, leaving schools with no equipment or with technology they had no idea how to implement
·         Government warehouses contained many pallets loaded with shrink-wrapped E-Rate computers paid for but never used

It should be noted that the Congressional Hearing contains over 100 pages, and the summary above depicts a small portion of what was discovered.  The E-Rate program was designed with the goal of providing students with improved technology and Internet access, which would be a helpful tool in providing an education, particularly today where students must be prepared to enter the market already saturated with computer technology.  However, if a tool is not being used, or is being mishandled irresponsibly, then it represents a colossal waste.  The issue is not with the program itself, but an apparent lack of oversight.

The funds were controlled by a collection of telecommunication company representatives which calls itself the Universal Service Administrative Company.  The Federal funds earmarked for education should be distributed to the state, not one company handling bids for the whole country.  With better oversight, the E-Rate funds would be used to improve low-income schools rather than “over-building” existing networks in higher-funded schools in areas such as Washington (Eggerton, 2017).

The fault is not strictly with USAC, however.  Funds were distributed according to requests filed by the school districts, which entailed some restrictions.  For example, schools were instructed that only one service provider could be used to build the network.  The Russell-Tyler-Ruthton School District was ordered to repay over $42,000 when it was discovered that multiple contracts were awarded to different providers (Isaackson,2017).  Additional guidance is needed for districts to understand precisely what the restrictions are, and how to properly utilize the federal dollars allotted to them.  Confusion, rather than greed could be just as likely the cause for some situations.  For example, Idaho schools stand to lose $2 million of E-Rate funds because they negotiated telecommunication contracts independent of USAC’s guidelines, voiding their agreement (Richert, 2016).

All is not lost, however.  The program should not be eliminated, but should have more accountability across the board.  It is insufficient to blame the telecoms for charging and not fulfilling the contracts, or to crucify school district heads who do not follow up on equipment that might have been shipped and never installed.  There should be greater attention to detail from conception to installation.  There has been improvement since the 2004 hearings.  According to the State of States Report published by the Education Superhighway, 77 percent of districts have access to high-speed internet, more than double the amount which achieved the target set by the FCC in 2013 (Schaffhauser,2016).


Does shuffling more money into schools automatically guarantee gains in performance?  While there has never been conclusive empirical evidence that directly connects spending to school performance (Turner, 2016), the better question should be about how the funds are spent.  Proponents of technology integration argue that students should be given the latest tools to learn from (King, 2012).  The point of emphasis here is that as long as technology integration is exactly that, a tool, and not the focus of the education, then it can be a highly effective resource and deserves proper funding.

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