May, 2008

E-rate and Universal Service Issues

Stabilizing the Federal Communications Commission’s (FCC’s) Universal Service Fund and preserving the E-rate are important priorities for ALA’s “equity of access” agenda. The E-rate discount program for public libraries and K-12 public and private schools is a critical funding source for affordable telecommunications services for public libraries, and public and private K-12 schools. As part of the Universal Service Fund (USF) program, E-rate discounts have provided public libraries with discounts totaling $608,728,344.95 over the first 10 years of the program, from 1998 to 2007, with additional funding going to libraries through consortium applications.  

Without the E-rate discounts, libraries and schools could not provide library users and students, especially those without connectivity at home, with access to the technologies and digital information to participate in the information economy, meet lifelong learning needs, and develop skills to function in the workplace.  Congress can support libraries, USF and E-rate in several ways:

1. Provide a permanent exemption from Anti-Deficiency Act (ADA) requirements;
2. Press the FCC to accept ALA’s proposal for simplification of the E-rate application and disbursement processes;
3. Maintain the E-rate and stabilize the USF program while pushing for ubiquitous and affordable broadband capacities for all areas of the country; and
4. Provide for Internet safety education and oppose additional filtering mandates for E-rate participants.

Exemption of USF from Anti-Deficiency Act Requirements
An important legislative priority for libraries is exempting the E-rate and other USF programs from compliance with government accounting requirements under the Anti-Deficiency Act (ADA). Omnibus appropriations bills over the last four years have each included a one-year exemption. ALA now seeks a permanent exemption so that ADA rules do not shut down the flow of E-rate funds causing widespread confusion, as happened in 2004 for E-rate applicants and vendors. The current exemption expires on December 31, 2008.

The ALA supports the passage of S. 609 and H.R. 278to provide a permanent exemption from the ADA for all Universal Service Fund programs by amending Section254 of the Communications Act of 1934 so that USF funds “are not subject to certain provisions of the Anti-Deficiency Act.”

E-Rate Funding Should Not Be Extended to Additional Projects 
Reps. Bobby Rush (D-IL) and Fred Upton (R-MI) recently proposed a new bill, the School Emergency Notification Deployment Act (H.R. 5806). This bill would permit K-12 public and private schools to apply USF/E-rate discounts to emergency notification systems.

ALA opposes H.R. 5806 as it has repeatedly opposed expansion of the E-rate program for those products and services that go beyond the program’s intent: to provide access to advanced telecommunications services.  Every year the total amount requested in all of the school and library applications far exceeds the $2.25 billion E-rate cap.  Adding in costly and new uses of the USF program would break the back of the entire fund. 
There are alternatives: a more appropriate source of funding for these security systems is addressed by the Schools Empowered to Respond Act (H.R. 5766), introduced by Rep. Bob Etheridge (NC-D), with numerous cosponsors. This bill would amend the Homeland Security Act of 2002 and establish the Office of National School Preparedness and Response in the Department of Homeland Security. Grants, research and the inclusion of schools in preparedness planning are also included in H.R. 5766.
The E-rate was established for K-12 public and private schools and public libraries to obtain affordable advanced telecommunications services. The E-rate program already has far more demand on its cap of $2.25 billion. Allowing such services for E-rate support would be a precedent that both compromises the USF program and could provoke other new demands upon the program.

Simplification of the E-Rate Applications
With over 10 years of feedback from E-rate libraries, ALA proposed to the FCC, in filings over the last two years, recommendations to simplify the E-rate application and disbursement process. The “ALA Simplification Proposal” would promote increased library participation in the E-rate discount program and provide for improved oversight and accountability. Congress can demonstrate support for the E-rate program by asking the FCC to consider ALA’s proposal to simplify the E-rate application process. (There are other “simplification” proposals from other stakeholders that do not have the features outlined by ALA.)

Internet Safety Education over Blocking Interactive Web Applications
There are now bills calling for Internet safety education for libraries and schools receiving E-rate discounts.   Rep. Brad Ellsworth (IN-D) introduced the e-KIDS Act of 2007 (H.R. 3871) that would call for schools to certify as part of “Internet safety policy, [that…] schools are educating minors about appropriate online behavior.”  Sen. Ted Stevens, (AK-R) introduced Protecting Children in the 21st Century Act (S. 1965).

Both proposals require K-12 public and private schools receiving the E-rate to certify that they provide Internet safety education to their students in order to receive E-rate discounts. The Senate bill also addresses other issues such as public awareness, funding for education, strengthening investigations, etc. Public libraries are not included in these two bills. At this writing, Rep. Judith Biggert (IL-R) is expected to introduce another education bill that would require public libraries as well as K-12 schools to certify that they offer Internet safety education in order to obtain E-rate discounts. 

These are welcomed alternatives to the Deleting Online Predators Act (DOPA) reintroduced by Rep. Mark Kirk (R-IL) in this Congress. The “education” bills are clearly better alternatives to DOPA, which would block access to all interactive web applications, such as MySpace, except under certain limited conditions. 

ALA has long supported education as the best tool to promote safe Internet usage for young people; however, additional burdens placed on E-rate participants are not supported. Mandated blocking of all interactive web applications denies access to materials and activities appropriate for children as well as limiting their abilities to learn the skills to utilize these new technologies and applications for education and career development.  Decisions about Internet safety education and/or blocking technologies are best made at the local level by library and school boards based upon community needs and standards.