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Year-Two E-Rate Demand Estimated at $2.4 Billion; Year-Three Task Force Presents Report

The Schools and Libraries Division (SLD) of the Universal Service Administrative Company, which manages the e-rate program, reports that application totals for year two of the telecommunications discounts are an estimated $2.435 billion, which exceeds the $2.25-billion program cap and shows a strong increase over year one’s total of $2.02 billion. Over 32,000 schools and libraries submitted applications, 2,000 more than in the first round.

This demand will be taken into consideration by the Federal Communications Commission as it sets this year’s collection level. The FCC will also be considering the first set of recommendations from the Year-Three Task Force, presented to the SLD on April 19. Among the recommendations: A program-funding level of $2.25 billion/year; the level should be set and known before the application process begins; and all forms should be simplified and streamlined, possibly with an “E-Z” form. An executive summary of the report is available on the ALA Web site.

Posted April 26, 1999.

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