[Congressional Record Volume 145, Number 67 (Tuesday, May 11, 1999)]
[Senate]
[Pages S5050-S5051]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BURNS (for himself and Mr. Inhofe):
  S. 1004. A bill to amend the Communications Act of 1934 to reduce 
telephone rates, provide advanced telecommunications services to 
schools, libraries, and certain health care facilities, and for other 
purposes; to the Committee on Finance.

[[Page S5051]]

           SCHOOLS AND LIBRARIES INTERNET ACCESS ACT OF 1999

 Mr. BURNS. Mr. President, I am pleased to be introducing 
today, along with Senator Inhofe, the Schools and Libraries Internet 
Access Act of 1999. This bill addresses a timely and critical issue, 
that of the implementation of the schools and libraries program. 
Recently, new charges began appearing on people's telephone bills. 
These are the charges which providers are assessing to pay for the 
expansion of ``universal service'' in the form of the ``schools and 
libraries'' program. This bill is especially timely since Chairman 
Kennard announced last week that he's calling for a $1 billion annual 
increase in the e-rate program. That's an additional Billion in taxes 
that would be enacted without any review or commentary in Congress, 
and, most importantly, without a vote by our citizens' representatives. 
Congress needs to step to the plate and provide specific funding for 
this program that we all feel is important for rural and low-income 
regions.
  I don't think anyone in the Senate ever thought that the limited 
language which we included in the 1996 Act would be used to create a 
massive new entitlement program through universal service. Universal 
service has historically meant the provision of telecommunications 
services to all Americans, regardless of geographical location. The FCC 
has expanded the definition of universal service to include broad-
ranging social programs, which has caused the Commission's progress 
toward maintaining universal service to be delayed. While such goals as 
providing Internet access to schools and libraries may be laudable, 
they were never meant to be part of universal service as it has 
traditionally been known. Indeed, a huge additional burden has been 
placed on rural states like Montana in meeting these newfound 
definitions.
  I want to make it clear, however, that I have always supported the 
goal of connecting all of our schools to the Internet, as well as the 
provision of advanced telecommunications services to rural health care 
centers. I just felt that it was wrong to fund these programs on the 
backs of American consumers. It is with this in mind that I have 
proposed using an outdated 3 percent excise tax on telephones to fund 
the schools and libraries and rural health care programs. Currently, 
none of the money collected by the tax goes to fund telephone service 
for Americans.
  This tax was designed to fund World War I and was instituted in an 
era where telephones were a luxury. Well, World War I should be paid 
for by now and phones are certainly no longer a luxury item. The 3 
percent tax was kept alive to provide revenue to offset the deficit. In 
today's climate of budgetary surplus, this justification no longer 
makes sense. My proposal calls for cutting the excise tax by two-thirds 
and using the remaining third to fund the schools and libraries program 
and the rural health care program.
  This proposal is a win/win solution. It's a win for consumers, since 
it would eliminate the need for new charges on telephone service. It's 
a win for taxpayers, who would see billions of dollars in current taxes 
eliminated. It's a win for our schools, libraries and rural health care 
centers, who would see their programs fully funded without threatening 
universal service. With the support of the other members of Congress 
and the leadership of the Senate, I believe this proposal can solve the 
current crisis we face in funding the schools and libraries and rural 
health care programs.
  The Schools and Libraries Internet Access Act of 1999 is an important 
effort to shape the future of online access. I strongly encourage my 
colleagues to support the passage of this bill.
                                 ______