Schools and Libraries Program: Update on State-Level Funding by  
Category of Service (11-MAY-01, GAO-01-673).			 
								 
The Telecommunications Act of 1996 expanded the traditional	 
definition of universal service--affordable, nationwide telephone
service--to include eligible schools and libraries. Among other  
things, the act authorized the Federal Communications Commission 
(FCC) to implement a program to assist these institutions in	 
acquiring advanced telecommunications services in three 	 
categories of service: telecommunications, Internet access, and  
internal connections. This report discusses state-level data on  
the amount of funds committed to the three categories of eligible
services for each of the program's first three years. GAO found  
that requests substantially exceeded the program's available	 
funding level during the program's first and third years.	 
Priority is given to funding telecommunications and Internet	 
access requests first, and then to internal connections.	 
Applicants have requested nearly $5.2 billion in e-rate support, 
more than double the program's $2.25 billion funding cap. Since  
requests for telecommunications and Internet access services	 
total about $1.7 billion, it appears that most of the nearly $3.5
billion in internal connections requests could go unfunded under 
the current funding cap priority rules. 			 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-01-673 					        
    ACCNO:   A00986						        
  TITLE:     Schools and Libraries Program: Update on State-Level     
             Funding by Category of Service                                   
     DATE:   05/11/2001 
  SUBJECT:   Aid for education					 
	     Libraries						 
	     Internet						 
	     Public schools					 
	     Telecommunication					 
	     Telecommunication equipment			 
	     FCC E-Rate Program 				 

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GAO-01-673
     
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 0 a 0 a
112,774

Internet access 0 a 0 a 234,786 Telecommunications 0 a 0 a 504,398

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 0 a 0 a 0 a

Internet access 0 a 9,757 328,659 Telecommunications 0 a 85,643 170,213

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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