Press Release of Sen. Snowe & Rockefeller.
Re:  Response to FCC Announcement Regarding Schools and Libraries Fund.
Date: June 12, 1998.
Source: Office of Sen. Rockefeller.  This document was created by scanning a fax copy of the original, and converting it to HTML.
See also: Comments of Senators Snowe and Rockefeller at June 5 Press Conference.

United States Senate
Washington, DC 20510

FOR IMMEDIATE RELEASE
June 12, 1998

SNOWE, ROCKEFELLER CALL FCC ACTION ON E-RATE
'DISAPPOINTING'; VOW TO CONTINUE FIGHT
TO "CONNECT STUDENTS AND CLASSROOMS TO THE FUTURE"

WASHINGTON, D.C. -- As Commissioners for the Federal Communications Commission voted to pare back funding for the E-rate, which provides discounted access to advanced telecommunications services like the Internet for schools, libraries and rural hospitals, the bipartisan authors of the provision in Congress are expressing their concern and disappointment.

"The E-rate must survive so that our children -- and classrooms -- are connected to the future, " said Senators Olympia Snowe (R-Maine), and Jay Rockefeller (D-W.V.).   The Senators authored the E-rate provision during consideration of the Telecommunications Reform Act of 1996.

The Senators made their comments in the wake of the FCC's three to two vote to freeze collections for the E-rate discount at existing levels.  The decision would provide $1.9 billion in funding for schools and libraries, but funding would be stretched out over 18 months instead of the 12 months originally anticipated.  The result of the FCC action is a reduction of about 40% in anticipated funding, which will slow connection of the classrooms and libraries to the Internet and other advanced telecommunications services.

"Connecting our classrooms to the Information Age and giving every child access to the Internet should be among our highest priorities.  When we passed the Telecommunications Act in 1996, we had a deal -- the telecommunications companies were deregulated and given the chance to reap enormous dividends from competition in exchange for maintaining the fundamental commitment to universal service, including discounts for schools, libraries and rural health care providers," said Snowe and Rockefeller.

"There are over 30,000 pending applications seeking discounts of $2 billion.   We believe that every eligible application deserves funding.  It is disappointing that the FCC cut back this important program because of pressure from the companies.

"While the cuts are disappointing, it's important to remember that we are still moving forward -- more slowly, but steadily.  Linking our classrooms to the future must remain our goal and commitment.  Every student needs access to technology and the Information Age if we expect to compete and win in the global marketplace," the Senators said.

The members supported the FCC initiative to restructure the administration of the program as directed by Congress and to take further steps to ensure program integrity.   The FCC ordered an independent audit in December 1997, and Congressional leaders ordered a study by the U.S. Government Accounting Office (GAO) as well.  "Any and every effort to ensure the integrity of the E-rate program is welcome and essential," the Senators said.

"Starting a major new initiative is a challenge, but the 30,000 nationwide applications demonstrate the need for this technology and our communities' interest in connecting classrooms and gaining access to the wonders of advanced telecommunications," said Snowe and Rockefeller.