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Hearing of House Subcommittee on Oversight and Investigations - Problems with the E-Rate Program: GAO Review of FCC Management and Oversight

Date: March 16, 2005
Issues: Technology and Communication


HEARING OF HOUSE SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS - PROBLEMS WITH THE E-RATE PROGRAM: GAO REVIEW OF FCC MANAGEMENT AND OVERSIGHT

March 16, 2005

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Ms. Baldwin. Thank you, Mr. Chairman.

As a new member of this subcommittee, I want to acknowledge and commend the subcommittee for its work in prior sessions in examining this issue and abuse in the E-Rate program in general. I would like to begin by noting that the E-Rate program can boast many, many success stories. Millions of children in thousands of school districts across the country have benefited from improved Internet access due to E-Rate funding. I have heard about the way the E-Rate has been used in school and libraries in my own district, and there should be no doubt about the value of this program.

It is unfortunate that the actions of a few bad actors tarnishes an otherwise worthy program. When a school district fails to properly use E-Rate funds, not only do its students suffer, others that could have benefited also lose. When companies collude with school districts to rig bids, all kids lose.

Reviewing the previous work of this subcommittee and the GAO report released today raises very disturbing questions about the management and oversight of this program. With so much money at stake in so many different school districts, it is, unfortunately, not surprising that some unscrupulous people would attempt to abuse the system. These people should be prosecuted to the full extent of the law.

What is of greater concern are the failures of the Federal Communications Commission to properly safeguard public funds, to provide adequate program goals, and guidelines, and conduct sufficient auditing and oversight of E-Rate awards.

I am pleased that the subcommittee has examined this issue so carefully, and I look forward to working with the chairman and ranking member to make this program a success.

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http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_house_hearings&docid=99904.wais

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