November 2005 — News/In Brief

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Uncovering E-Rate Mismanagement

What’s the Impact?
The impact of the E-Rate report is still uncertain. Because of the time and money spent on it, and the fact that the report was generated by a part of the committee that oversees the FCC and the E-Rate program, it is likely that the findings and recommendations will indeed affect the program. The obvious timing for major changes is during the reauthorization of the Telecommunications Act next year, but other changes could happen sooner. Congress may attempt to streamline the entire E-Rate process and make it less confusing. However, it is clear that more reporting, auditing, and general oversight into every aspect of the process also will be implemented. Whether or not Congress can maintain a balance between adding regulations to fight the waste, fraud, and abuse, and making the program more streamlined and easier to use for districts, is a fundamental question.

Following are three report messages that came across loud and clear:

  • The FCC needs to do a better job with oversight, monitoring, and auditing, and it needs more money to do it.
  • There seems to be significant blame directed toward vendors. The frequent use of the term “gold-plating” implies vendors are hoodwinking school districts into getting a range of goods and services that they do not need. Vendors need to be watched more carefully, if not reined in.
  • There is a related implication that school districts are naïve and do not know what they are doing. Therefore, districts need to plan better, and they need more guidance in planning.

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"Uncovering E-Rate Mismanagement," T.H.E. Journal, 11/1/2005, http://www.thejournal.com/articles/17459

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