Report to the Honorable

John D. Rockefeller IV

U.S. Senate

United States General Accounting Office

GAO

May 2001 SCHOOLS AND

LIBRARIES

PROGRAM

Update on State-Level

Funding by Category

of Service

GAO-01-673
Page 1 GAO-01-673 Schools and Libraries Program

May 11, 2001

The Honorable John D. Rockefeller IV

United States Senate

Dear Senator Rockefeller:

As you know, the Telecommunications Act of 1996 expanded the

traditional definition of universal service—affordable, nationwide

telephone service—to include eligible schools and libraries.1

 Among other

things, the act authorized the Federal Communications Commission (FCC)

to implement a program to assist these institutions in acquiring advanced

telecommunications services. FCC’s program (often referred to as the “erate” program) helps schools and libraries cover the costs of three

categories of service: telecommunications (e.g., local and long-distance

calling, high-speed lines); Internet access; and internal connections (the

equipment needed to deliver these services). Schools and libraries do not

receive funding directly from the program. Instead, support comes in the

form of discounts on the costs of telecommunications services provided

by the applicants’ vendors. The discounts range from 20 to 90 percent,

with higher discounts going to applicants in low-income and rural areas.2

FCC appointed the Universal Service Administrative Company (USAC) to

administer the program, although FCC retains responsibility for

overseeing the program’s operations and ensuring compliance with its

 1

Generally, educational institutions that meet the definition of “schools” in the Elementary

and Secondary Education Act of 1965 are eligible to participate in the e-rate program.

Libraries that receive assistance from a state’s library administrative agency under the

Library Services and Technology Act are eligible for support unless their budgets are part

of a school’s budget. Individual e-rate applications can cover single schools or libraries,

whole school districts or library systems, consortia, or schools in entire cities and states.

2

The program measures how economically disadvantaged the schools and libraries are by

the number of students eligible to participate in the national school lunch program. Urban

and rural designations are based on the Metropolitan Statistical Area (MSA) listing.

United States General Accounting Office

Washington, DC 20548
Page 2 GAO-01-673 Schools and Libraries Program

rules.3 USAC’s Schools and Libraries Division (SLD) is responsible for

carrying out the program’s day-to-day operations.

To obtain e-rate support, eligible schools and libraries must submit an

application to SLD specifying the services they wish to purchase, the costs

of the services, and the vendors they have selected to provide the services.

SLD reviews each application and commits (i.e., sets aside) program funds

for eligible requests. If the total amount of program funding requested by

all applicants exceeds the level of funding available (currently $2.25 billion

annually), priority is given to supporting requests for telecommunications

services and Internet access. Any remaining funds are then used to

support internal connection requests, starting with applicants with the

highest discount level (90 percent) and moving downward through lower

discount levels until the available funds are committed. USAC holds the

committed funds until the applicant certifies that it has begun receiving

services and invoices have been submitted. USAC then uses the

committed funds to reimburse the vendors for the discounted portion of

the approved services.

In our December 2000 report on e-rate issues, we included data on the

amount of program funds requested, committed, and approved for

payment during the first 2 program years (1998 and 1999), broken out by

state.4

 Funding commitments for the third program year (2000) were not

yet available because SLD and FCC had not finished making all of their

commitment decisions at the time we concluded our review. In February

2001, you requested that we provide state-level data on the amount of

funds committed to the three categories of eligible services for each of the

program’s first 3 years. In addition, we have included a preliminary

estimate of the amount of e-rate funding requested for the fourth program

year (2001).

 3

USAC was originally established as a subsidiary of the National Exchange Carrier

Association (NECA) to administer the high-cost and low-income universal service support

mechanisms. USAC currently performs billing, collection, and disbursement functions for

all universal service support mechanisms, including the e-rate program. These mechanisms

are funded through a universal service fund. Under the act, every telecommunications

carrier providing interstate service must contribute to this fund, unless exempted by FCC.

The Commission also requires certain other telecommunications service providers, such as

pay phone service providers, to contribute to the universal service fund.

4

Schools and Libraries Program: Application and Invoice Review Procedures Need

Strengthening (GAO-01-105, Dec. 15, 2000).
Page 3 GAO-01-673 Schools and Libraries Program

Requests for e-rate support by schools and libraries in all three categories

of service have been steadily increasing. During the program’s first and

third years (1998 and 2000), requests substantially exceeded the program’s

available funding level. Because priority is given to funding

telecommunications and Internet access requests first, not all internal

connections requests for those 2 years were met. This situation has

intensified for the fourth program year (2001). Applicants have requested

nearly $5.2 billion in e-rate support, more than double the program’s

current $2.25 billion funding cap. Since the requests for

telecommunications and Internet access services total about $1.7 billion, it

appears that most of the nearly $3.5 billion in internal connection requests

could go unfunded under the current funding cap and priority rules. We

provided a draft of this report to FCC and USAC for comment. USAC’s

Chief Executive Officer responded that the report provides a useful

update, and FCC agreed with our presentation of the data.

The e-rate program does not provide support for all the

telecommunications services that schools and libraries may need or

desire. The Telecommunications Act directed FCC to convene a FederalState Joint Board on universal service. On the basis of the board’s

recommendations, FCC’s May 1997 Universal Service Order, along with

several subsequent orders, defines three categories of service that are

eligible for e-rate support:

• telecommunications service, such as local, long-distance, and international

telephone service, as well as high-speed data links (such as T-1 lines);

• Internet access, such as dial-up Internet access, and e-mail services; and

• internal connections, such as telecommunications wiring, routers,

switches, and network servers that are necessary to transport information

to individual classrooms.

Telecommunications and Internet access services can include both

recurring costs, such as monthly service charges, and one-time installation

costs. Internal connections are generally one-time costs to purchase and

install eligible equipment and software. Some items within these

categories are eligible only if certain conditions are met. For example,

personal communications service (PCS) and cellular telephone service are

conditionally eligible if used at a place of instruction for educational

purposes. Some other items are always ineligible for e-rate support, even

though they may be necessary or desirable for providing students or

library patrons with access to advanced telecommunications services,

Results in Brief

Three Categories of

Service Eligible for

Support
Page 4 GAO-01-673 Schools and Libraries Program

such as the Internet. Ineligible items include personal computers, modems

in personal computers, virus protection software, and content-filtering

software designed to block access to objectionable Web sites. FCC’s

Schools and Libraries Eligibility List provides additional information on

the items that can be funded under each of the three service categories.

When applying for e-rate funding, schools and libraries must categorize the

requested services as telecommunications service, Internet access, or

internal connections.

The program has completed 3 years of funding commitments. SLD

committed more than $1.7 billion in discount funding in the first program

year; however, because FCC had set the funding level for the first year

program year at $1.925 billion, not all of the $2.3 billion in requests could

be funded. 5

 Using FCC’s funding priority rules, SLD first committed funds

to all valid requests for telecommunications services and Internet access,

and then it committed the remaining funds to valid internal connections

requests from applicants with discount levels of 70 percent or higher.6

During the second program year (1999), FCC raised the funding level to

equal the $2.25 billion cap. After screening out ineligible requests, FCC

found that it had more than enough funds to approve all of the valid

requests it received before the initial application deadline. Thereafter, FCC

directed SLD to reopen the second-year application period so that the

remainder of the funds could be used. As of January 2001, SLD had

committed nearly $2 billion to second-year applicants.

In the third program year (2000), however, applicants requested more than

$4.2 billion in discount funding. Although the amount of funds requested

for all three categories of services increased from the previous program

years, most of the additional requests were for internal connections.

Because the program’s annual funding level remained at the $2.25 billion

cap, SLD again used FCC’s priority rules to make funding commitments.

SLD approved all eligible requests for telecommunications and Internet

 5

Some of the amounts presented in this report for the first 2 program years differ from

those included in our December 2000 report because they reflect more current information.

For example, some applicants cancelled funding requests or had their commitments

revoked due to the inclusion of ineligible services. Also, in this report we included data for

second-year applications received and processed after the initial application period.

6

SLD held some funds in reserve to cover appeals by applicants that were denied funding

and also used funds to pay the program’s administrative costs. Also, FCC extended the first

program year from 12 to 18 months.

Funds Have Been

Sufficient for

Telecommunications

Service and Internet

Access, But Not

Internal Connections
Page 5 GAO-01-673 Schools and Libraries Program

access and, with the remaining funds, provided e-rate support for internal

connections requests from applicants with discount levels of 82 percent or

higher.

As figure 1 shows, somewhat less than half of the available funds in each

of the first 3 program years was needed to meet all the eligible requests for

telecommunications and Internet access. Although SLD denied some valid

requests for internal connections in the first and third years due to a lack

of available funds, this service category still accounted for most of the

funds committed. Appendix I provides a state-by-state breakdown of the

funds committed to each category of service for these years.

Figure 1: E-rate funds committed by category of service and year, 1998-2000 (in

millions)

Source: GAO analysis of SLD data

$0

$500

$1,000

$1,500

$2,000

$2,500

1998 1999 2000

Funding year

Funds in millions

Internet access

Telecommunications

Internal connections

A
Page 6 GAO-01-673 Schools and Libraries Program

Fourth program year (2001) requests for e-rate funding increased

significantly over the previous year’s requests. SLD’s preliminary estimates

indicate that applicants have requested almost $5.2 billion in program

funds—nearly $1 billion more than year 3 and more than double the $2.25

billion in funding available for the year.

As shown in table 1, fourth-year requests for telecommunications and

Internet access total about $1.7 billion. Under the current cap and funding

priority rules, this leaves about $517 million for internal connections

requests and other program needs – far less than the nearly $3.5 billion

requested by applicants for this purpose.7

 Although the requested amounts

may change as SLD accepts additional valid applications and excludes

ineligible requests, it appears that there may not be enough funds even to

cover the nearly $1.6 billion in internal connections support requested by

applicants in the highest priority level (i.e., those with a 90 percent

discount level).

 7

SLD does not commit all available e-rate funds. It holds some funds in reserve to cover

appeals by applicants that were denied funding and to cover the program’s administrative

costs.

Overall Increase in

Requests Will Limit

Funding for Internal

Connections
Page 7 GAO-01-673 Schools and Libraries Program

Table 1: Estimated Amount of Program Funds Requested by Applicants for Fourth

Program Year (as of April 17, 2001)

Discount

level

Telecommunications

 services

Internet

access

Internal

connections

Total (Percent

of total)

20-29

$2,124,662 $554,757 $2,910,514

$5,589,934

(0.1%)

30-39

9,323,491 1,993,868 3,823,332

15,140,691

(0.3)

40-49

119,085,067 33,981,845 155,050,412

308,117,323

(5.9)

50-59

139,158,034 44,404,260 125,889,608

309,451,902

(6.0)

60-69

177,133,506 88,282,664 211,815,966

477,232,191

(9.2)

70-79

233,790,586 91,319,962 159,073,112

484,183,660

(9.3)

80-89

306,147,139 84,449,009 1,247,026,394

1,637,622,541

(31.5)

90

298,847,831 101,970,713 1,556,519,702

1,957,338,246

(37.7)

Total

(Percent

of total)

$1,285,610,370

(24.7%)

$446,957,078

(8.6%)

$3,462,109,039

(66.6%)

$5,194,676,487

(100%)

Note: Columns may not add to totals due to rounding.

Source: Schools and Libraries Division of USAC.

According to FCC’s current priority rules, if the remaining funds are not

sufficient to support all of the funding requests within a particular

discount level, the total amount of remaining support available is to be

divided by the amount of support requested within the particular discount

level to produce a pro rata factor. The support level for each applicant

within the particular discount level is then reduced by the amount derived

from multiplying each applicant’s requested amount of support by the pro

rata factor.8

 SLD officials said, however, that FCC is also considering other

options for determining how fourth year requests will be funded.

To provide the updated information in this report, we obtained program

data from and interviewed officials at USAC and SLD. When using

computer-generated data provided by SLD, we tested their reliability

 8

 See 47 C.F.R. 54.507(g)(iv).

Scope and

Methodology
Page 8 GAO-01-673 Schools and Libraries Program

against complementary data sets. We performed our review from January

through April 2001 in accordance with generally accepted government

auditing standards.

We provided a draft of this report to FCC and USAC for comment. USAC’s

Chief Executive Officer commented that our report provides a useful

update, and FCC agreed with our presentation of the data.

We are sending copies of this report to interested congressional

committees; the Honorable Michael K. Powell, Chairman of the Federal

Communications Commission; and other interested parties. We will also

make copies available to others upon request.

If you or your staff have any questions about this report, please call me or

John Finedore at (202) 512-2834. Other major contributors include James

R. Sweetman, Jr.; Teresa Russell; and Mindi Weisenbloom.

Sincerely yours,

Stanley J. Czerwinski

Director, Physical Infrastructure Issues

Agency Comments
Appendix I: E-rate Funding Committed During

1998-2000

Page 9 GAO-01-673 Schools and Libraries Program

The Schools and Libraries Division of the Universal Service Administrative

Company (SLD) provided us with a copy of its database for the first 3

program years (1998-2000) that included funding requests, commitments,

and authorized payments of committed funds for each year. The data for

program years 1 and 2 were current as of January 22, 2001; and the data

for year 3 was current as of January 18, 2001. Because SLD’s database is

constantly changing as funding decisions and appeal decisions are

reached, the data included in this report constitute a snapshot in time. For

this reason, the totals presented here for the first 2 program years differ

from the totals in our December 2000 report, which used data that were

current as of August 31, 2000.

Table 2 shows the amounts of discount funding committed to applicants

by SLD and approved for payment in each of the first 3 program years. The

table includes totals committed for telecommunications, Internet access,

and internal connections for each state or territory where an applicant was

located.

Appendix I: E-rate Funding Committed

During 1998-2000
Appendix I: E-rate Funding Committed During

1998-2000

Page 10 GAO-01-673 Schools and Libraries Program

Table 2: E-Rate Funds Committed for Internal Connections, Internet Access, and Telecommunications– 1998-2000

State Category of service

First program

year (1998)

Second program

year (1999)

Third program

year (2000)

Alabama Internal connections $35,952,617 $16,459,318 $5,165,400

Internet access 2,076,042 3,290,479 4,666,970

Telecommunications 8,876,040 6,592,132 8,880,891

Total $46,904,698 $26,341,929 $18,713,260

Alaska Internal connections 2,720,333 3,450,841 1,586,467

Internet access 1,703,856 622,289 6,134,702

Telecommunications 9,188,918 7,499,734 4,242,868

Total $13,613,107 $11,572,864 $11,964,037

American Samoa Internal connections 2,483,023 1,179,617 554,452

Internet access 725,610 1,046,886 1,073,639

Telecommunications 348,716 477,318 442,886

Total $3,557,348 $2,703,821 $2,070,977

Arizona Internal connections 22,274,884 30,888,694 32,458,874

Internet access 5,156,470 1,234,052 2,357,490

Telecommunications 8,210,174 6,027,860 10,148,501

Total $35,641,528 $38,150,606 $44,964,866

Arkansas Internal connections 5,445,285 3,298,341 7,928,224

Internet access 3,562,785 2,579,977 4,214,936

Telecommunications 4,400,434 4,438,156 5,197,489

Total $13,408,504 $10,316,474 $17,340,649

California Internal connections 149,438,202 177,580,785 401,383,438

Internet access 4,559,533 8,413,973 7,546,296

Telecommunications 57,714,874 49,522,917 62,653,632

Total $211,712,610 $235,517,675 $471,583,366

Colorado Internal connections 4,945,890 3,821,024 2,025,780

Internet access 607,531 658,597 936,482

Telecommunications 8,762,859 7,874,594 11,184,084

Total $14,316,280 $12,354,214 $14,146,345

Connecticut Internal connections 13,668,482 24,219,918 15,524,032

Internet access 1,236,908 1,591,135 2,486,571

Telecommunications 9,256,916 6,298,154 6,473,353

Total $24,162,307 $32,109,207 $24,483,956

Delaware Internal connections 13,806 33,192 9,285

Internet access 41,977 35,155 70,074

Telecommunications 963,452 1,303,225 1,316,385

Total $1,019,235 $1,371,571 $1,395,743

District of Columbia Internal connections 1,494,775 4,990,872 6,865,463

Internet access 116,200 449,666 250,525

Telecommunications 3,255,857 3,987,419 2,283,931

Total $4,866,831 $9,427,956 $9,399,918
Appendix I: E-rate Funding Committed During

1998-2000

Page 11 GAO-01-673 Schools and Libraries Program

State Category of service

First program

year (1998)

Second program

year (1999)

Third program

year (2000)

Florida Internal connections 19,397,311 40,677,404 9,685,058

Internet access 4,131,490 4,955,421 8,389,043

Telecommunications 26,170,924 28,085,208 35,362,412

Total $49,699,726 $73,718,033 $53,436,513

Georgia Internal connections 53,116,976 66,763,537 16,224,979

Internet access 7,615,894 4,631,300 7,196,407

Telecommunications 17,637,504 19,653,579 24,666,848

Total $78,370,374 $91,048,416 $48,088,233

Guam Internal connections 0a 0a 112,774

Internet access 0a0a234,786

Telecommunications 0a0a504,398

Total $0 $0 $851,958

Hawaii Internal connections 4,270,409 3,504,119 341,147

Internet access 673,587 281,952 326,283

Telecommunications 947,561 1,542,952 1,910,660

Total $5,891,557 $5,329,023 $2,578,090

Idaho Internal connections 2,025,957 2,528,245 137,548

Internet access 303,948 367,308 477,343

Telecommunications 2,291,035 1,832,953 2,044,281

Total $4,620,940 $4,728,506 $2,659,172

Illinois Internal connections 46,846,818 132,721,004 87,293,621

Internet access 3,681,895 3,572,666 2,995,512

Telecommunications 30,499,137 25,072,020 23,973,545

Total $81,027,851 $161,365,691 $114,262,677

Indiana Internal connections 5,447,814 9,376,390 1,675,182

Internet access 6,428,578 1,922,955 10,563,652

Telecommunications 10,031,897 11,504,516 7,105,092

Total $21,908,289 $22,803,861 $19,343,927

Iowa Internal connections 1,807,760 3,659,874 222,882

Internet access 1,080,869 911,665 1,468,726

Telecommunications 4,420,837 3,369,525 3,580,931

Total $7,309,466 $7,941,063 $5,272,539

Kansas Internal connections 1,817,738 7,541,425 406,105

Internet access 1,300,786 1,486,460 1,975,650

Telecommunications 7,332,009 5,904,474 5,371,857

Total $10,450,532 $14,932,360 $7,753,611

Kentucky Internal connections 33,972,470 42,409,745 9,962,615

Internet access 1,357,485 1,423,001 1,397,089

Telecommunications 15,016,030 13,072,431 14,882,067

Total $50,345,985 $56,905,176 $26,241,771

Louisiana Internal connections 27,820,481 23,022,801 8,789,027

Internet access 3,242,779 4,876,371 5,117,774
Appendix I: E-rate Funding Committed During

1998-2000

Page 12 GAO-01-673 Schools and Libraries Program

State Category of service

First program

year (1998)

Second program

year (1999)

Third program

year (2000)

Telecommunications 9,173,222 9,736,822 11,559,499

Total $40,236,482 $37,635,994 $25,466,300

Maine Internal connections 1,182,159 1,447,627 274,386

Internet access 128,069 247,379 211,056

Telecommunications 1,704,331 1,919,460 2,962,185

Total $3,014,559 $3,614,466 $3,447,627

Maryland Internal connections 2,808,617 10,477,457 7,640,148

Internet access 897,313 827,698 1,474,356

Telecommunications 11,320,671 10,743,738 9,888,962

Total $15,026,602 $22,048,893 $19,003,465

Massachusetts Internal connections 15,008,069 19,271,003 20,539,772

Internet access 2,272,033 1,575,327 12,455,442

Telecommunications 12,809,518 12,153,542 13,335,691

Total $30,089,620 $32,999,872 $46,330,905

Michigan Internal connections 27,764,667 51,098,939 20,412,190

Internet access 3,176,092 5,491,653 5,138,703

Telecommunications 27,577,891 22,294,558 27,165,473

Total $58,518,651 $78,885,150 $52,716,366

Minnesota Internal connections 8,604,648 14,413,890 737,942

Internet access 1,038,057 1,381,097 2,312,498

Telecommunications 15,116,453 13,602,802 14,380,589

Total $24,759,157 $29,397,790 $17,431,029

Mississippi Internal connections 11,957,733 16,031,172 10,823,337

Internet access 2,674,834 2,027,063 2,048,799

Telecommunications 9,746,874 11,939,569 17,535,948

Total $24,379,441 $29,997,805 $30,408,084

Missouri Internal connections 6,736,279 9,106,766 49,635,455

Internet access 5,090,548 9,284,652 5,251,788

Telecommunications 13,394,833 10,377,481 17,406,218

Total $25,221,660 $28,768,900 $72,293,461

Montana Internal connections 1,063,641 1,350,675 411,962

Internet access 461,573 589,065 783,288

Telecommunications 2,148,838 1,785,433 1,926,829

Total $3,674,052 $3,725,173 $3,122,080

Nebraska Internal connections 256,398 920,195 99,496

Internet access 451,304 512,688 858,539

Telecommunications 4,226,892 5,308,624 5,153,248

Total $4,934,595 $6,741,507 $6,111,282

Nevada Internal connections 1,525,148 117,670 595,860

Internet access 44,740 87,282 29,799

Telecommunications 3,810,920 2,932,278 3,415,094

Total $5,380,808 $3,137,231 $4,040,753
Appendix I: E-rate Funding Committed During

1998-2000

Page 13 GAO-01-673 Schools and Libraries Program

State Category of service

First program

year (1998)

Second program

year (1999)

Third program

year (2000)

New Hampshire Internal connections 301,136 185,336 28,135

Internet access 135,616 204,434 344,811

Telecommunications 1,183,159 879,333 868,458

Total $1,619,911 $1,269,103 $1,241,405

New Jersey Internal connections 42,680,348 24,854,126 19,514,652

Internet access 1,861,580 2,574,776 2,841,439

Telecommunications 18,179,319 16,477,408 19,757,230

Total $62,721,247 $43,906,311 $42,113,321

New Mexico Internal connections 12,070,923 22,916,532 10,858,466

Internet access 1,167,432 740,844 1,656,463

Telecommunications 6,070,542 5,448,714 6,167,005

Total $19,308,898 $29,106,091 $18,681,934

New York Internal connections 76,778,840 104,893,589 170,084,408

Internet access 13,520,538 15,487,831 13,961,675

Telecommunications 81,803,035 72,287,091 91,318,883

Total $172,102,413 $192,668,511 $275,364,966

North Carolina Internal connections 10,739,803 18,513,060 8,108,979

Internet access 2,278,292 3,711,775 5,800,340

Telecommunications 13,900,885 14,467,773 13,483,406

Total $26,918,980 $36,692,607 $27,392,726

North Dakota Internal connections 918,891 658,934 98,403

Internet access 162,153 216,656 373,528

Telecommunications 1,502,598 1,312,139 1,249,611

Total $2,583,641 $2,187,730 $1,721,543

Northern Mariana Islands Internal connections 0a

0a0a

Internet access 0a9,757 328,659

Telecommunications 0a85,643 170,213

Total $0 $95,401 $498,872

Ohio Internal connections 32,453,600 21,800,950 33,381,282

Internet access 5,929,252 4,923,050 9,135,352

Telecommunications 19,761,118 16,409,997 18,387,423

Total $58,143,969 $43,133,998 $60,904,057

Oklahoma Internal connections 20,967,679 20,375,902 8,666,364

Internet access 3,777,386 3,596,975 4,539,686

Telecommunications 8,952,738 9,930,318 11,275,361

Total $33,697,803 $33,903,196 $24,481,411

Oregon Internal connections 2,327,267 4,251,385 806,591

Internet access 581,825 593,012 1,418,615

Telecommunications 6,694,371 6,107,873 8,259,014

Total $9,603,463 $10,952,270 $10,484,221

Pennsylvania Internal connections 29,458,843 34,224,444 22,510,917

Internet access 2,074,711 3,508,066 5,966,033
Appendix I: E-rate Funding Committed During

1998-2000

Page 14 GAO-01-673 Schools and Libraries Program

State Category of service

First program

year (1998)

Second program

year (1999)

Third program

year (2000)

Telecommunications 20,686,203 18,464,909 23,758,333

Total $52,219,758 $56,197,419 $52,235,284

Puerto Rico Internal connections 12,177,166 42,178,990 48,083,879

Internet access 191,778 8,248,795 28,206,579

Telecommunications 35,277,911 16,851,991 465,908

Total $47,646,855 $67,279,777 $76,756,365

Rhode Island Internal connections 3,966,163 4,004,239 882,136

Internet access 432,647 401,588 702,500

Telecommunications 1,611,588 3,418,082 2,708,424

Total $6,010,398 $7,823,910 $4,293,060

South Carolina Internal connections 13,366,701 16,625,615 31,979,417

Internet access 492,119 229,899 1,302,912

Telecommunications 12,506,615 11,801,715 17,829,477

Total $26,365,435 $28,657,229 $51,111,807

South Dakota Internal connections 1,038,062 586,268 166,284

Internet access 476,469 519,169 324,686

Telecommunications 1,444,087 1,009,054 1,303,606

Total $2,958,618 $2,114,491 $1,794,575

Tennessee Internal connections 11,593,160 31,132,713 18,177,140

Internet access 24,328,240 18,396,184 14,280,008

Telecommunications 15,764,305 13,245,087 14,078,532

Total $51,685,706 $62,773,984 $46,535,680

Texas Internal connections 84,455,651 88,421,657 91,255,096

Internet access 3,796,954 5,364,396 11,260,016

Telecommunications 41,492,667 41,169,138 50,893,017

Total $129,745,272 $134,955,191 $153,408,129

Utah Internal connections 605,617 428,430 342,829

Internet access 1,491,637 2,029,183 1,440,918

Telecommunications 4,288,847 3,271,682 3,311,496

Total $6,386,100 $5,729,296 $5,095,243

Vermont Internal connections 386,897 199,569 3,889

Internet access 161,172 280,625 546,986

Telecommunications 1,525,260 1,109,533 1,119,178

Total $2,073,329 $1,589,727 $1,670,053

Virgin Islands Internal connections 1,296,674 2,044,407 573,410

Internet access 80,960 220,321 87,224

Telecommunications 802,810 82,789 71,226

Total $2,180,444 $2,347,516 $731,860

Virginia Internal connections 6,910,321 10,109,017 1,219,027

Internet access 2,063,067 1,832,619 2,668,579

Telecommunications 16,601,731 13,236,016 14,600,731

Total $25,575,119 $25,177,652 $18,488,337
Appendix I: E-rate Funding Committed During

1998-2000

Page 15 GAO-01-673 Schools and Libraries Program

State Category of service

First program

year (1998)

Second program

year (1999)

Third program

year (2000)

Washington Internal connections 12,637,622 19,718,592 3,857,587

Internet access 1,227,510 543,819 1,041,960

Telecommunications 15,446,076 12,506,624 13,290,331

Total $29,311,208 $32,769,036 $18,189,878

West Virginia Internal connections 3,689,346 4,539,473 1,484,645

Internet access 2,207,453 2,296,311 378,976

Telecommunications 3,453,888 2,525,578 3,562,171

Total $9,350,687 $9,361,363 $5,425,793

Wisconsin Internal connections 23,551,174 10,092,504 7,558,172

Internet access 1,433,232 2,986,393 3,265,407

Telecommunications 13,233,728 12,985,109 14,572,620

Total $38,218,134 $26,064,005 $25,396,199

Wyoming Internal connections 443,162 2,941,437 564,894

Internet access 56,788 180,353 133,142

Telecommunications 721,314 1,846,760 428,743

Total $1,221,264 $4,968,551 $1,126,779

Total for all states $1,731,711,446 $1,957,315,585 $2,102,066,459

a

No funds requested.

Note: Columns may not add to totals due to rounding.

Source: GAO analysis of SLD data, as of January 2001.

(391014)

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