Telecommunications and Information Technology: Federal Programs That Can
Be Used to Fund Technology for Schools and Libraries (Testimony,
09/16/1998, GAO/T-HEHS-98-246).

The nation's school districts and public libraries are increasingly
investing in technology to improve education, communication, and the
flow of information. For example, between 1994 and 1997, the percentage
of public schools with Internet access rose from 35 percent to 78
percent. But the cost of this technology is high. One market research
organization reported that public schools spent an estimated $4.3
billion on technology in school year 1996-97 and projected that they
would spend $5.2 billion in school year 1997-98. This testimony reviews
federal programs that can be used to fund technology for schools and
libraries. GAO (1) lists these programs, (2) describes their features,
such as the federal administrative costs, number of federally funded
full-time-equivalent positions assigned to each program, the procedures
used to award funding, program funding levels, and the authorizing
statute or legal authority to provide such funding; (3) describes the
potential for duplication; (4) discusses how the Government Performance
and Results Act can be used to coordinate and reduce duplication in such
programs; (5) describes federal efforts to coordinate federal education
and technology programs; and (6) provides information on waste, fraud,
and abuse in each program and efforts to eliminate these problems.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-HEHS-98-246
     TITLE:  Telecommunications and Information Technology: Federal
	     Programs That Can Be Used to Fund Technology for
	     Schools and Libraries
      DATE:  09/16/1998
   SUBJECT:  Aid for education
	     Computers
	     Libraries
	     Public schools
	     Telecommunication
	     Education or training
	     Information technology
	     Educational grants
IDENTIFIER:  GSA Catalog of Federal Domestic Assistance
	     FCC E-Rate Program
	     Goals 2000
	     Technology Innovation Challenge Grant
	     Technology Literacy Challenge Fund
	     Dept. of Education Star Schools Program
	     Dept. of Education 21st Century Community Learning Centers
	     Program
	     Dept. of Commerce Telecommunications and Information
	     Infrastructure Assistance Program
	     NEH Education, Development, and Demonstration Program
	     Dept. of Education Title I Program

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GAO/T-HEHS-98-246

Cover
================================================================ COVER

Before the Committee on Commerce and the Committee on Education and
the Workforce, House of Representatives

For Release on Delivery
Expected at 10:30 a.m.
Wednesday, September 16, 1998

TELECOMMUNICATIONS AND INFORMATION
TECHNOLOGY - FEDERAL PROGRAMS THAT
CAN BE USED TO FUND TECHNOLOGY FOR
SCHOOLS AND LIBRARIES

Statement of Carlotta C.  Joyner, Director
Education and Employment Issues
Health, Education, and Human Services Division

GAO/T-HEHS-98-246

GAO/HEHS-98-246T

(104943)

Abbreviations
=============================================================== ABBREV

  CFDA - Catalog of Federal Domestic Assistance
  FCC - Federal Communications Commission
  IDEA - Individuals With Disabilities Education Act
  NASA - National Aeronautics and Space Administration
  NEH - National Endowment for the Humanities

SUMMARY
============================================================ Chapter 0

This statement presents the results of our work to date on federal
programs that can be used to fund telecommunications and information
technology for public and private elementary and secondary schools
(grades K through 12) and public libraries.  At least 27 programs
provide funding that may be used to purchase this technology for
schools or libraries.  For example, four of the programs specifically
target technology funding to schools or libraries.  Three of these
have a combined fiscal year 1998 funding level totaling $565 million.
The other program--the universal service discount for schools or
libraries, also called the "e-rate"--has a funding level of $1.925
billion for the first funding period (the 18-month period beginning
January 1998).  Under this program, discounts can be provided to
eligible schools or libraries for telecommunication services,
Internet access, and internal connections; however, no discounts have
yet been funded.  The remaining 23 programs do not specifically
target technology for schools or libraries but can be used for this
purpose.  Some of these programs target schools or libraries but
provide funds that can be used for other purposes as well as
technology.  Others target technology but not exclusively schools or
libraries.  Others do not target funds either to schools or libraries
as recipients or technology as a program purpose, but funds may go to
schools or libraries and may be used for technology.  Except for
programs targeted both to technology and to schools or libraries,
limited information is available on the amounts spent for technology.
All the federal programs are authorized by law.  Some statutes
specifically authorize technology or telecommunications programs;
others have authorization broad enough to allow these uses.

TELECOMMUNICATIONS AND INFORMATION
TECHNOLOGY:  FEDERAL PROGRAMS THAT
CAN BE USED TO FUND TECHNOLOGY FOR
SCHOOLS AND LIBRARIES
============================================================ Chapter 1

Messrs.  Chairmen and Members of the Committees:

We are pleased to be here today to discuss the results of our work to
date on federal programs that can be used to fund telecommunications
and information technology for public and private elementary and
secondary schools (grades K through 12) and public libraries.  By
"telecommunications and information technology," we mean services and
products such as telephone and Internet access; computer hardware,
software, and wiring; and teacher training in the use of these
services and products.

The nation's school districts and public libraries are increasingly
investing in technology to improve education, communication, and the
flow of information.  For example, between 1994 and 1997 the
percentage of public schools with access to the Internet rose from 35
percent to 78 percent.  But the cost of this technology is high.  One
market research organization, Quality Education Data, reported that
public schools spent an estimated $4.3 billion on technology in
school year 1996-97 and projected they would spend $5.2 billion in
school year 1997-98.  A 1996 RAND study estimated the cost of
providing technology-rich learning environments in all schools at
between $10 billion and $20 billion per year.

The federal government has supported these technology investment
efforts of libraries and schools in multiple ways.  For example, in a
May 1998 report, we noted that the Catalog of Federal Domestic
Assistance (CFDA)\1 describes at least 40 federal programs that
appear to provide funding assistance that might be used for these
purposes.\2 Because of the number of programs and concern over
whether there is a lack of coordination and monitoring among them,
you asked that we conduct a comprehensive review of programs created
or facilitated by the federal government that can be used to fund
schools' or libraries' technology initiatives.  More specifically,
you asked us to (1) list these programs; (2) describe specific
features of each of them, such as the federal administrative costs,
number of federally funded full-time-equivalent (FTE) positions
allocated to each program, the procedures used to award the funding,
total program funding in fiscal year 1998 and estimated amount of
funding used for technology in fiscal years 1996, 1997, and 1998, and
the authorizing statute or legal authority to provide such funding;
(3) describe the potential for duplication, as seen in the targeted
purposes and recipients for each program; (4) discuss how the
Government Performance and Results Act of 1993 can be used to
coordinate and reduce duplication in programs such as these; (5)
describe federal efforts to coordinate federal education and
technology programs; and (6) provide any information available
regarding waste, fraud, or abuse in each program and efforts to
eliminate such problems.

While our review will not be completed until the summer of 1999, you
asked that we identify at this hearing (1) what federal programs are
available to provide federal or private funding for libraries and
elementary and secondary schools for telecommunications and
information technology and, for each, the fiscal year 1998 funding
level; (2) what information is available about the portion of those
funds that was used for technology; and (3) what the authorizing
statute or legal authority is for each program to provide such
funding.

To answer these questions, we reviewed the CFDA, Department of
Education documents, Congressional Research Service publications, and
our previous work.  We also contacted officials in each of the
federal agencies and departments to obtain more detailed information
about each program.  This approach enabled us to make a more
definitive assessment of whether a program would in fact allow funds
to be provided for technology to schools or libraries, as we defined
them.  By "schools," we mean public or private elementary and
secondary schools (grades K through 12).  By "libraries," we mean
public libraries, elementary and secondary school libraries, and
private libraries that are not operated for profit; we did not
include libraries affiliated with colleges and universities.  Funds
may be provided to state education agencies and school districts or
to individual schools directly.

In summary, our work to date suggests that at least 27 programs
provide funding that may be used to purchase telecommunications and
information technology for schools or libraries (see appendix).  For
example, four of the programs specifically target technology funding
to schools or libraries.  Three of these have a combined fiscal year
1998 funding level totaling $565 million.  The other program--the
universal service discount for schools and libraries, also called the
"e-rate"--has a funding level of $1.925 billion for the first funding
period (the 18-month period beginning January 1998).  Under this
program, discounts can be provided to eligible schools and libraries
for telecommunication services, Internet access, and internal
connections; however, no discounts have yet been funded.  The
remaining 23 programs do not specifically target technology for
schools or libraries but can be used for this purpose.  Some of these
programs target schools or libraries but provide funds that can be
used for other purposes as well as technology.  Others target
technology but not exclusively schools or libraries.  Others do not
target funds either to schools or libraries as recipients or
technology as a program purpose, but funds may go to schools or
libraries and may be used for technology.  Except for programs
targeted both to technology and to schools or libraries, limited
information is available on the amounts spent for technology.  The
fiscal year 1998 funding levels for the more broadly targeted
programs ranged from $905,000 to nearly $7.4 billion.  Among the
programs that we identified, more are available to schools than to
libraries.  All the federal programs are authorized by law.  Some
statutes specifically authorize technology or telecommunications
programs; others have authorization broad enough to allow these uses.

--------------------
\1 The CFDA is a governmentwide compendium of federal programs,
projects, services, and activities that provides assistance and
benefits.  Coordinated by the Office of Management and Budget and
compiled by the General Services Administration, the CFDA contains
information, both financial and nonfinancial, about programs
administered by federal departments and agencies.

\2 Telecommunications:  Court Challenges to FCC's Universal Service
Order and Federal Support for Telecommunications for Schools or
Libraries (GAO/RCED/OGC-98-172R, May 7, 1998).

   BACKGROUND
---------------------------------------------------------- Chapter 1:1

In recent years, much discussion has focused on the increased use of
computers, networks, and connections to the Internet to augment
communication and learning.  The number of computers per student has
increased from 1 for every 125 students in school year 1983-84 to 1
for every 9 students in school year 1996-97.  In 1997, 27 percent of
classrooms, computer labs, and library/media centers were connected
to the Internet, nine times greater than the percentage in 1994.

Schools have used a variety of funding sources to establish and
support their technology programs.  Some rely on state funding, while
others use local tax moneys.  Some private funding is also available,
and federal funding sources also play a role in supporting
technology.  Our 1998 report on five school districts found that each
used a combination of sources to fund its technology programs.\3 For
example, the Seattle Public Schools in Seattle, Washington, received
10 percent of their funding for technology from federal programs, 67
percent from a local capital levy, 16 percent from the district
operating budget, about 4 percent from state programs, and 3 percent
from private sources.  On the other hand, the Manchester School
District in Manchester, New Hampshire, obtained 78 percent of its
technology funding from a federal Innovation Challenge Grant, 18
percent from the district operating budget, and 3 percent from
private sources.

In addition to funding provided by state, local, and federal sources,
assistance for technology has also been made available to schools and
libraries through the Federal Communications Commission's (FCC)
e-rate program, which is funded by mandatory contributions from
interstate telecommunications and other service providers.

--------------------
\3 School Technology:  Five School Districts' Experiences in Funding
Technology Programs (GAO/HEHS-98-35, Jan.  29, 1998).

   AT LEAST 27 FEDERAL PROGRAMS
   MAY PROVIDE FUNDS FOR
   TELECOMMUNICATIONS AND
   INFORMATION TECHNOLOGY FOR
   SCHOOLS AND LIBRARIES
---------------------------------------------------------- Chapter 1:2

At least 27 federal programs may provide funding for technology to
elementary and secondary schools and libraries.\4 Three of these
programs, administered by the Department of Education, specifically
provide funding for technology to schools or libraries.  These three
programs provided $565 million in 1998.  A fourth program--the
e-rate--will provide discounts to schools and libraries for
telecommunications services, Internet access, and internal
connections.\5 The remaining 23 programs, administered by five
agencies and departments, do not exclusively fund technology or
target their funds to just schools or libraries.  Funds from these
programs may also be used for a wide range of other activities, such
as development and implementation of comprehensive education reform
plans through the Goals 2000 program.  Other recipients may include
universities and colleges, social service organizations, nonprofit
groups, and Native American tribal organizations.  The 1998 funding
levels for these programs ranged from $905,000 to almost $7.4
billion.  Funding mechanisms include both formula and competitive
grants.  The 27 programs are described in the appendix and summarized
in table 1 and the following narrative.\6

                                Table 1

                         Categories of Programs

                                          Recipients
----------------------  ----------------------------------------------
                                                Schools and libraries
                        Schools or libraries    allowed but not
Program purpose         targeted                exclusively targeted
----------------------  ----------------------  ----------------------
Targets technology      Category I: targets     Category III: targets
                        schools or libraries    technology but not
                        and technology (N=4)    schools or libraries
                                                (N=4)

Allows technology but   Category II: targets    Category IV: Does not
does not target it      schools or libraries    target schools or
                        but not technology      libraries or
                        (N=16)                  technology (N=3)
----------------------------------------------------------------------

--------------------
\4 We also identified a few other programs that may provide funds for
technology for schools or libraries, but we have not yet obtained
enough detailed information to determine conclusively whether they
fit our criteria for including them on this list.

\5 Not more than $1.925 billion will be spent for the schools and
libraries support program during the 18-month period beginning
January 1998.

\6 We also identified several federal programs that provide
technology resources, such as educational materials, technical
assistance, and teacher training, to schools or libraries but do not
provide funding.  For example, the National Aeronautics and Space
Administration (NASA) does not provide funding to schools or
libraries, but its Aerospace Education Services Program conducts
workshops with teachers to show them how to enhance their mathematics
and science programs with on-line NASA programs.  The funding for the
Aerospace Education Services Program was $5.6 million in 1998.  In
addition, the Department of Education's six Regional Technical
Support and Professional Development Consortia, which had a budget of
$10 million in 1998, provided technical support and professional
development by providing teacher training for technology programs.

      CATEGORY I:  PROGRAMS THAT
      TARGET TECHNOLOGY FOR
      SCHOOLS OR LIBRARIES
-------------------------------------------------------- Chapter 1:2.1

Three Department of Education programs and one FCC program target
technology for schools or libraries.  The three Department of
Education programs provided a total of about $565 million in 1998 to
support technology specifically for schools or libraries.  They are
the Technology Literacy Challenge Fund, with a 1998 funding level of
$425 million; the Technology Innovation Challenge Grants Program, at
$106 million; and the Star Schools Program, at $34 million.  The
largest program--the Technology Literacy Challenge Fund--provides
resources to states to enable schools to integrate technology into
school curricula.  The states distribute the funds to school
districts competitively for a broad range of technology purchases,
such as computer hardware and software, telecommunications services,
and professional development.  Technology Innovation Challenge Grants
are competitive grants to support school district technology efforts,
and Star Schools supports programs that provide increased access to
education services such as distance learning.

One of the largest funding initiatives we identified is FCC's e-rate
program.  The general purpose of this program is to improve the
access of schools and libraries to modern telecommunications
services.  It was added by the Telecommunications Act of 1996, which,
among other things, extended universal service support to eligible
schools and libraries and also specified that every
telecommunications carrier that provides interstate
telecommunications services, unless exempted by FCC, must contribute
to a universal service fund.\7 In its May 1997 universal service
order, FCC adopted a recommendation that eligible schools and
libraries may receive discounts of between 20 to 90 percent on
telecommunications services, Internet access, and internal
connections.\8

Schools and libraries located in rural and low-income areas will
receive the highest discounts from the fund.  Schools and libraries
will receive only discounts--no direct funding from the program.  The
universal service fund then compensates the schools' and libraries'
vendors for the amount of the discounts.  Funding for the e-rate is
capped at $2.25 billion annually.  Schools and libraries that
submitted applications for discounts through April 1998 requested
about $2 billion in discounts.  In June 1998, however, FCC
significantly modified the program, extending the first funding
period to 18 months and adjusting the amounts that could be collected
and spent during 1998 and the first 6 months of 1999 to $1.925
billion.  As of September 16, 1998, no schools or libraries had yet
received discounts through the program.

--------------------
\7 Traditionally, "universal service" has meant providing residential
customers with affordable, nationwide access to basic telephone
service.

\8 FCC's universal service order has been challenged in federal
court.  Texas Office of Public Utility Counsel v.  FCC, No.  97-60421
(5th Cir.  filed June 25, 1997).

      CATEGORY II:  PROGRAMS THAT
      TARGET SCHOOLS OR LIBRARIES
      BUT DO NOT TARGET TECHNOLOGY
      AS A USE FOR THE FUNDS
-------------------------------------------------------- Chapter 1:2.2

Sixteen programs available only to schools or libraries do not target
technology specifically but allow recipients to use funds for
technology.  The Department of Education administers 13 of the
programs, and the Institute of Museum and Library Services
administers 3.  In 1998, the total program funding levels ranged from
$905,000 to almost $7.4 billion, but in many cases, officials were
not able to provide estimates of the amount spent for technology.
For example, through the Twenty-First Century Community Learning
Centers Program administered by the Department of Education, rural
and inner-city public elementary and secondary schools or a consortia
of such schools may compete for grants to establish school-based,
community learning programs.  Among the 13 activities that the
program may fund are literacy education and children's day care
services along with telecommunications and technology education
programs.  A Department of Education official said that the agency
knows that some of the funding is used to support technology, but it
does not require schools to report how much of the grants were spent
for each activity.  For some programs, however, the amount spent on
technology can be identified.  For example, of the almost $6 million
available through the Migrant Coordination Program, $3.3 million was
awarded for six technology projects to develop innovative uses of
technology for migrant students.

      CATEGORY III:  PROGRAMS THAT
      TARGET TECHNOLOGY BUT DO NOT
      TARGET SCHOOLS OR LIBRARIES
-------------------------------------------------------- Chapter 1:2.3

For four programs in three agencies--the Departments of Agriculture,
Commerce, and Education--funds are targeted to technology uses
through competitive grants, and schools or libraries--among other
organizations--are eligible to apply.  Program funding levels for
1998 ranged from $12.5 million to more than $34 million.  For three
of the programs, however, only a small portion of the funds is
awarded to schools or libraries, according to program officials.  For
example, the Department of Commerce's Telecommunications and
Information Infrastructure Assistance Program awarded nearly $21
million in 1997 grants for 55 information infrastructure
demonstration projects.  Of that amount, about $2.4 million was
awarded for six projects for libraries or elementary or secondary
school initiatives.  Other recipients included a fire protection
district in Colorado that established remote command sites to manage
emergency equipment and personnel and the Circuit Court of Cook
County Illinois, which established a children's advocacy network.
According to a Department of Commerce official, the average grant was
about $350,000.

      CATEGORY IV:  PROGRAMS THAT
      DO NOT TARGET SCHOOLS OR
      LIBRARIES AND DO NOT TARGET
      TECHNOLOGY
-------------------------------------------------------- Chapter 1:2.4

Three programs do not target funds either to schools or libraries as
recipients or to technology as a program purpose, but funds may go to
schools or libraries and may be used for technology.  Programs in
this category are administered by the Department of Education and the
National Endowment for the Humanities (NEH).  Funding levels in 1998
ranged from $3 million to $6 million.  For example the NEH Education,
Development, and Demonstration Program provided over $4 million in
competitive grants.  Of that amount, an agency official estimated
that about 65 percent was awarded to elementary and secondary schools
for technology projects, such as development of CD-ROM and websites,
with humanities content.  Other grant recipients in this category
include universities and colleges, state and local governments, and
nonprofit organizations.

   INFORMATION ON AMOUNTS SPENT ON
   TECHNOLOGY IS NOT ALWAYS
   AVAILABLE
---------------------------------------------------------- Chapter 1:3

We considered funding for federal programs that target technology to
be used entirely for technology products or services.  For programs
that do not target technology but allow funds to be used for
technology, it is more difficult to get information on how much of
the funding is actually spent on technology.  Recipients of these
funds are not always required to prepare detailed budgets or report
expenditures in a way that would capture that information.  We
identified two types of funding mechanisms in this category:  (1)
competitive grant programs, in which state education agencies, school
districts, or other entities may compete for funding and (2) formula
grant programs that allocate funds to state education agencies,
school districts, or other entities through a formula based on
specific criteria such as the number of students in the state or the
number of students below the poverty level.  Some competitive grants
require recipients to develop and submit a detailed budget listing
planned expenditures.  In some cases, officials told us that they
could provide an estimate of funds spent on technology by using this
budget information.  However, several officials overseeing formula
grants told us that grant recipients were not required to report
expenditures and that these data might be available only at the state
level.

For example, one such program, the Department of Education's Title I
program, is designed to provide financial assistance to local
education agencies for services to educationally disadvantaged
students to improve academic performance.  Total funding was almost
$7.4 billion in fiscal year 1998.  According to a program official,
schools have used a portion of their Title I funds, which are awarded
according to a formula, to acquire and apply technology under the
broad authority of this legislation.  However, because the Department
does not require states to report exactly how their districts spend
their Title I funds each year, it is not known exactly what amount or
percentage of these funds was spent for technology in recent years.
The Department has contracted for a study, scheduled for completion
in 1999, that will provide information about state and school
district Title I expenditures, including technology.

   PROGRAMS' AUTHORIZING STATUTES
   OR LEGAL AUTHORITY
---------------------------------------------------------- Chapter 1:4

All the federal programs we have identified as providing funds to
schools and libraries for technology are authorized by law.  Some
statutes specifically authorize technology programs.  In many other
cases, the Congress has authorized agencies to carry out activities
or provide financial assistance to schools and libraries under
programs broad enough to be used for technology.  One program, the
Telecommunications and Information Infrastructure Assistance Program,
is authorized primarily by appropriations acts.  The Congress, in
appropriations acts, has expanded the authority of the Department of
Commerce under the Communications Act of 1934 to construct public
telecommunications facilities.  The appropriations acts specifically
permit funds to be used for planning and constructing
telecommunications networks for schools, libraries, and other social
services.

-------------------------------------------------------- Chapter 1:4.1

This concludes my prepared statement.  I would be pleased to respond
to any questions you or Members of the Committees may have.

FEDERAL FUNDING PROGRAMS FOR
TECHNOLOGY
==================================================== Appendix Appendix

                                    Table I.1

                       Programs That Target Technology for
                               Schools or libraries

                    Authorizing
                    statute or legal    1998 funding
Program             authority           level\a             Comments
------------------  ------------------  ------------------  --------------------
Department of Education
--------------------------------------------------------------------------------
1. Technology       Elementary and      $106,000,000        Grants are for 5-
Innovation          Secondary                               year technology
Challenge Grants    Education Act of                        development and
                    1965, as amended,                       demonstration
                    title III, part A,                      projects and are
                    section 3136, 20                        available to local
                    U.S.C. 6846                             education agencies
                                                            that have a
                                                            consortium of
                                                            community partners
                                                            that includes at
                                                            least one local
                                                            education agency
                                                            with a high
                                                            percentage or number
                                                            of children living
                                                            below the poverty
                                                            level. These grants
                                                            focus on
                                                            professional
                                                            development.

2. Technology       Elementary and      $425,000,000        This program
Literacy Challenge  Secondary                               encourages the
Fund Grants         Education Act of                        integration of
                    1965, as amended,                       technology into
                    title III, part A,                      school instructional
                    sections 3131-                          programs. Funds for
                    3137, 20 U.S.C.                         this program are
                    6841-6847                               allocated to all
                                                            states on the basis
                                                            of their Title I
                                                            funding, with a
                                                            minimum funding
                                                            level of $2.1
                                                            million for an
                                                            individual state in
                                                            1998. The state runs
                                                            competitions based
                                                            on state priorities,
                                                            and 95 percent of
                                                            the funds go to
                                                            school districts.
                                                            This fund can be
                                                            used for a broad
                                                            range of activities
                                                            related to
                                                            technology,
                                                            including computer
                                                            hardware and
                                                            software,
                                                            professional
                                                            development, and
                                                            telecommunications
                                                            services.

3. Star Schools     Elementary and      $34,000,000         This program
Program             Secondary                               supports the
                    Education Act of                        development of
                    1965, as amended,                       distance learning
                    title III, part B,                      courses for students
                    sections 3201-                          and resources for
                    3210, 20 U.S.C.                         teachers. The focus
                    6891-6900                               of the program is
                                                            directed toward
                                                            underserved
                                                            populations
                                                            including the
                                                            disadvantaged and
                                                            those with limited
                                                            English proficiency.
                                                            Grants are awarded
                                                            to
                                                            telecommunications
                                                            partnerships for a
                                                            variety of
                                                            expenditures,
                                                            including
                                                            telecommunications
                                                            equipment,
                                                            instructional
                                                            programming, and
                                                            technical
                                                            assistance.

Federal Communications Commission
--------------------------------------------------------------------------------
4. Universal        Telecommunications  $1.925 billion for  This program
Service Discount    Act of 1996, as     18 months           provides discounts
for Schools and     amended, title I,   beginning January   to eligible schools
Libraries [e-       section 101(a),     1998                and libraries
rate]               P.L. 104-104, 47                        ranging from 20 to
                    U.S.C. 254 (h)                          90 percent for
                                                            telecommunications
                                                            services, Internet
                                                            access, and internal
                                                            connections. The
                                                            program is funded by
                                                            mandatory
                                                            contributions from
                                                            interstate
                                                            telecommunications
                                                            and other service
                                                            providers.

--------------------------------------------------------------------------------
\a With the exception of the e-rate program, funding levels shown are
the fiscal year 1998 appropriations for a program or allocation of
appropriated funds made within a department to specific programs.

                                    Table I.2

                         Programs That Target Schools or
                      Libraries but Do Not Target Technology

                    Authorizing
                    statute or legal    1998 funding
Program             authority           level\a             Comments
------------------  ------------------  ------------------  --------------------
Department of Education
--------------------------------------------------------------------------------
1. Title I Grants   Elementary and      $7.375 billion      Funds are allocated
to Local Education  Secondary                               to all states on the
Agencies            Education Act of                        basis of the number
                    1965, as amended,                       of children from
                    title I, part A,                        low-income families.
                    sections 1111-                          These grants provide
                    1127, 20 U.S.C.                         additional academic
                    6311-6338                               support to help low-
                                                            achieving children
                                                            meet state
                                                            performance
                                                            standards. The
                                                            Department of
                                                            Education is
                                                            conducting a study
                                                            of how Title I funds
                                                            are spent--
                                                            including
                                                            expenditures for
                                                            technology,
                                                            according to program
                                                            officials. Results
                                                            of the study will be
                                                            available in 1999.

2. Migrant          Elementary and      $299,475,000        Funds support the
Education, Basic    Secondary                               special needs of
State Grant         Education Act of                        migrant children to
Program             1965, as amended,                       help ensure that
                    title I, part C,                        they have the
                    sections 1301-                          opportunity to meet
                    1307, 20 U.S.C.                         the same performance
                    6391-6397                               standards that all
                                                            children are
                                                            expected to meet.

3. Migrant          Elementary and      $5,998,000          Six technology
Education           Secondary                               grants, totaling
Coordination        Education Act of                        $3.3 million, were
Program             1965, as amended,                       awarded to address
                    title I, part C,                        the problems of
                    section 1308, 20                        disruption, lack of
                    U.S.C. 6398                             resources, and
                                                            language difficulty
                                                            that children of
                                                            migrant families
                                                            experience. Very
                                                            little of the
                                                            funding is used for
                                                            technology,
                                                            according to a
                                                            program official.

4. Magnet Schools   Elementary and      $101,000,000        The purpose of these
Assistance          Secondary                               grants is to support
                    Education Act of                        desegregation of
                    1965, as amended,                       public schools.
                    title V, part A,                        Funds may be used
                    sections 5101-                          for a variety of
                    5113, 20 U.S.C.                         activities,
                    7201-7213                               including the
                                                            acquisition of
                                                            computers and their
                                                            maintenance and
                                                            operation--if they
                                                            are necessary for
                                                            the conduct of the
                                                            program and are
                                                            directly related to
                                                            improving student
                                                            skills and
                                                            knowledge.

5. Eisenhower       Elementary and      $23,300,000         This program focuses
Professional        Secondary                               on K-12 teacher
Development         Education Act of                        education. According
Federal Activities  1965, as amended,                       to a program
                    title II, parts A                       official, only one
                    and C, sections                         of four portions of
                    2101, 2102, 2301-                       the program provides
                    2306, 20 U.S.C.                         technology funding
                    6621, 6622, 6671-                       to schools or
                    6676                                    libraries, and no
                                                            new grants were
                                                            awarded in 1998 for
                                                            that portion.

6. Eisenhower       Elementary and      $335,000,000        The objective of
Professional        Secondary                               this program is to
Development State   Education Act of                        improve teaching and
Grants              1965, as amended,                       learning through
                    title II, part B,                       high-quality
                    sections 2201-                          professional
                    2211, 20 U.S.C.                         development
                    6641-6651                               activities in the
                                                            core academic
                                                            subjects. Funding is
                                                            provided to states
                                                            by formula.
                                                            According to a
                                                            program official,
                                                            some of the funding
                                                            goes to institutions
                                                            of higher education,
                                                            and there is no
                                                            estimate of how much
                                                            was spent on
                                                            technology-related
                                                            professional
                                                            development.

7. Javits Gifted    Elementary and      $6,500,000          Program provides
and Talented        Secondary                               competitive grants
Students Education  Education Act of                        to state and local
Program             1965, as amended,                       education agencies
                    title X, part B,                        and institutions of
                    sections 10201-                         higher education,
                    10206, 20 U.S.C.                        and other
                    8031-8036                               organizations, to
                                                            build a national
                                                            capability to meet
                                                            the needs of gifted
                                                            and talented
                                                            students. An
                                                            estimated 10 percent
                                                            of $4 million
                                                            awarded in grant
                                                            funding was spent on
                                                            technology in 1998,
                                                            according to a
                                                            program official.

8. Fund for the     Elementary and      $108,100,000        Program provides
Improvement of      Secondary                               competitive grants
Education           Education Act of                        to fund nationally
                    1965, as amended,                       significant programs
                    title X, part A,                        to improve the
                    sections 10101-                         quality of
                    10107, 20 U.S.C.                        education. Grants
                    8001-8007                               may be awarded to
                                                            state education
                                                            agencies, local
                                                            education agencies,
                                                            institutions of
                                                            higher education,
                                                            and public and
                                                            private nonprofit
                                                            organizations and
                                                            institutions.

9. Goals 2000       Goals 2000:         $466,000,000        Formula grants are
State and Local     Educate America                         awarded to all
Education Systemic  Act, as amended,                        states to develop
Improvement Grants  title III,                              and implement
                    sections 301-319,                       comprehensive
                    P.L. 103-227, 20                        education reform
                    U.S.C. 5881-5899                        plans at the state,
                                                            local, and school
                                                            levels to improve
                                                            the teaching and
                                                            learning of all
                                                            children. States may
                                                            use their grants to
                                                            purchase technology.

10. Twenty-First    Elementary and      $40,000,000         Competitive grants
Century Community   Secondary                               are awarded to rural
Learning Centers    Education Act of                        and inner-city
                    1965, as amended,                       public K-12 schools,
                    title X, part I,                        consortia of such
                    sections 10901-                         schools, or local
                    10907,                                  education agencies
                    20 U.S.C. 8241-                         to set up school-
                    8247                                    based learning
                                                            centers for the
                                                            entire community.
                                                            Telecommunications
                                                            and technology
                                                            education is one of
                                                            13 program
                                                            activities funded.

11. Bilingual       Elementary and      $160,000,000        Program provides
Education Capacity  Secondary                               grants to local
and Demonstration   Education Act of                        education agencies
Grants              1965, as amended,                       to fund programs for
                    title VII, part A,                      students with
                    sections 7101-                          limited English
                    7161,                                   proficiency.
                    20 U.S.C. 7401-                         According to a
                    7491                                    program official,
                                                            technology
                                                            development is
                                                            encouraged.

12. Innovative      Elementary and      $350,000,000        Formula grants are
Education Program   Secondary                               allocated to all
Strategies          Education Act of                        state education
                    1965, as amended,                       agencies on the
                    title VI, sections                      basis of the number
                    6001-6403, 20                           of school-aged
                    U.S.C. 7301-7373                        children. Part of
                                                            the purpose of the
                                                            program is to
                                                            support state
                                                            efforts to obtain
                                                            technology as part
                                                            of a broad program
                                                            of education reform.

13. Alaska Native   Elementary and      $905,000            Funds are awarded to
Student Enrichment  Secondary                               Alaska Native
Program             Education Act of                        organizations or
                    1965, as amended,                       educational entities
                    title IX, part C,                       to develop science
                    section 9306, 20                        and mathematics
                    U.S.C. 7936                             enrichment programs
                                                            for Alaska Native
                                                            students.

Institute of Museum and Library Services
--------------------------------------------------------------------------------
14. National        Museum and Library  $7,500,000          This program
Leadership Grants   Services Act, as                        includes three types
                    amended, P.L. 94-                       of competitive
                    462, title II,                          grants for libraries
                    section 262, 20                         for education and
                    U.S.C. 9162                             training, research
                                                            and demonstration
                                                            projects, and
                                                            preservation of
                                                            collections,
                                                            according to a
                                                            program official. It
                                                            also includes a
                                                            fourth competitive
                                                            grant for museums'
                                                            and libraries' model
                                                            projects. An
                                                            estimated 75 percent
                                                            of funding was spent
                                                            on technology-
                                                            related expenses.

15. Native          Museum and Library  $2,577,000          This program
American and        Services Act, as                        provides basic
Native Hawaiian     amended, P.L. 94-                       formula grants for
Grants              462, title                              core library
                    II,section 261, 20                      operations as well
                    U.S.C. 9161                             as competitive
                                                            grants for training
                                                            for library staff
                                                            and specialized
                                                            projects, according
                                                            to a program
                                                            official. An
                                                            estimated 35 percent
                                                            of funding was spent
                                                            on technology-
                                                            related expenses.

16. State Grants    Museum and Library  $126,292,000        This program
                    Services Act, as                        provides formula
                    amended, title II,                      grants to state
                    section 231, P.L.                       library associations
                    94-462, 20 U.S.C.                       on the basis of
                    9141                                    state population,
                                                            according to a
                                                            program official.
                                                            Funds may be used
                                                            for network and
                                                            communication needs
                                                            as determined by the
                                                            state entity. An
                                                            estimated 50 percent
                                                            of funding was spent
                                                            on technology-
                                                            related projects.
--------------------------------------------------------------------------------
\a Funding levels shown are the fiscal year 1998 appropriations for a
program or allocation of appropriated funds made within a department
to specific programs.

                                    Table I.3

                      Programs That Target Technology but Do
                         Not Target Schools or Libraries

                    Authorizing
                    statute or legal    1998 funding
Program             authority           level\a             Comments
------------------  ------------------  ------------------  --------------------
Department of Agriculture
--------------------------------------------------------------------------------
1. Distance         Federal,            $12,500,000         Awards may be made
Learning and        Agriculture,                            to a variety of
Telemedicine        Conservation, and                       organizations,
Grants              Trade Act of 1990,                      including
                    as amended, title                       educational
                    XXIII, section                          institutions,
                    2333, 7 U.S.C.                          libraries, and
                    950aaa-2                                medical
                                                            organizations. 1998
                                                            awards will be made
                                                            in September,
                                                            according to a
                                                            program official.

Department of Commerce
--------------------------------------------------------------------------------
2. Public           Communications Act  $20,000,000         This program
Telecommunications  of 1934, as                             provides funding to
Facilities          amended, title                          upgrade, expand, or
Planning and        III, part IV,                           create public
Construction        sections 390-                           broadcasting
                    393A, 397-399B, 47                      capability,
                    U.S.C. 390-393a,                        according to a
                    397-399b; Dept. of                      program official.
                    Commerce                                Grants are awarded
                    Appropriations Act                      to organizations
                    for Fiscal Year                         including public or
                    1997, P.L. 104-                         noncommercial
                    208; Dept. of                           educational
                    Commerce                                broadcast stations
                    Appropriations Act                      and noncommercial
                    for Fiscal Year                         telecommunications
                    1998, P.L. 105-                         entities; nonprofit
                    119                                     institutions
                                                            organized primarily
                                                            for educational or
                                                            cultural purposes;
                                                            and state, local, or
                                                            Native American
                                                            tribal governments.
                                                            About $3 million
                                                            each year is awarded
                                                            to educational
                                                            institutions, most
                                                            of which goes to
                                                            universities,
                                                            according to a
                                                            program official.

3.                  Communications Act  $20,000,000         Provides funding for
Telecommunications  of 1934, as                             information
and Information     amended, title                          infrastructure
Infrastructure      III, part IV,                           demonstration
Assistance Program  sections 390-392,                       projects, according
                    47 U.S.C. 390-                          to a program
                    392; Dept. of                           official. Grants go
                    Commerce                                to public and
                    Appropriations Act                      nonprofit entities,
                    for Fiscal Year                         for example, state
                    1997, P.L. 104-                         and local
                    208; Dept. of                           governments, police
                    Commerce                                and fire
                    Appropriations Act                      departments,
                    for Fiscal Year                         community and social
                    1998, P.L. 105-                         service
                    119                                     organizations. In
                                                            1997, of 55 grants,
                                                            6 went to library
                                                            projects or K-12
                                                            education
                                                            initiatives.

Department of Education
--------------------------------------------------------------------------------
4. Special          Individuals With    $34,023,000         Grants are awarded
Education           Disabilities                            to (1) promote the
Technology and      Education Act                           development,
Media Services for  (IDEA), as                              demonstration, and
Individuals With    amended, part B,                        utilization of
Disabilities        section 687, 20                         technology and (2)
                    U.S.C. 1487                             support education
                                                            media activities
                                                            designed to be of
                                                            educational value to
                                                            children with
                                                            disabilities, and
                                                            other specified
                                                            media-related
                                                            activities. Grants
                                                            go to state and
                                                            local education
                                                            agencies, nonprofit
                                                            organizations,
                                                            higher education
                                                            institutions, Native
                                                            American tribes,
                                                            tribal
                                                            organizations, and
                                                            outlying areas.

--------------------------------------------------------------------------------
\a Funding levels shown are the fiscal year 1998 appropriations for a
program or allocation of appropriated funds made within a department
to specific programs.

                                    Table I.4

                      Programs That Do Not Target Schools or
                      Libraries and Do Not Target Technology

                    Authorizing
                    statute or legal    1998 funding
Program             authority           level\a             CommentsDepartment
------------------  ------------------  ------------------  --------------------
National Endowment for the Humanities
--------------------------------------------------------------------------------
1. Promotion of     National            $4,730,000          This program
the Humanities      Foundation on the                       provides competitive
Education,          Arts and the                            grants. About 65
Development, and    Humanities Act of                       percent of the
Demonstration       1965, as amended,                       funding went to K-
Grants              sections 2, 7,                          12 schools for
                    P.L. 89-209, 20                         technology-related
                    U.S.C. 951, 956                         projects such as
                                                            development of CD-
                                                            ROM or websites,
                                                            according to a
                                                            program official.

2. Promotion of     National            $6,000,000          This program
the Humanities      Foundation on the                       provides grants to
Summer Seminars     Arts and the                            teachers at all
and Institutes      Humanities Act of                       grade levels and
                    1965, as amended,                       others to direct or
                    sections 2, 7,                          attend training
                    P.L. 89-209, 20                         seminars on a
                    U.S.C. 951, 956                         variety of
                                                            humanities-related
                                                            subjects. According
                                                            to a program
                                                            official, an
                                                            estimated 1 percent
                                                            was spent on
                                                            technology-related
                                                            training for K-12
                                                            teachers.

Department of Education
--------------------------------------------------------------------------------
3. Women's          Elementary and      $3,000,000          The primary focus of
Educational Equity  Secondary                               this program is to
Act Program         Education Act of                        promote gender
                    1965, as amended,                       equity through
                    title V, part B,                        educational
                    sections 5201-                          opportunities for
                    5208, 20 U.S.C.                         girls and women.
                    7231-7238                               According to a
                                                            program official,
                                                            most grants are made
                                                            to K-12 and higher
                                                            education
                                                            institutions and
                                                            most recipients
                                                            probably use part of
                                                            their grants for
                                                            computer hardware
                                                            and software.
--------------------------------------------------------------------------------
\a Funding levels shown are the fiscal year 1998 appropriations for a
program or allocation of appropriated funds made within a department
to specific programs.
*** End of document ***