Open Forum December 2004
Vol. 18 No. 3
Innovations in information resource management to support government
FROM THE EDITOR
Wishing you...
PEACE, Serenity, Joy,
HEALTH, Happiness,
Friendship, Hope,
Prosperity,
Warmth, Goodwill, Harmony
Happy Holidays,
Greg
Rebecca
Milena
e-Rate: A Major Contributor to Enterprise Architecture
The e-Rate program created in 1996 has made a substantial contribution to the "wiring" of US schools and public libraries. As such, it has become an enabling factor for creating a significant segment of the American telecommunications infrastructure. We are extremely grateful to Sara Fitzgerald, Vice President of Funds For Learning, LLC for agreeing to contribute to this issue of the Open Forum by providing a brief overview of the history of the e-Rate program, some of its notable successes and the implications it has for further contributing to the development of the federal and state enterprise architecture.
Back in 1996, a couple of US senators managed to get an amendment included in the sweeping telecommunications law that Congress passed that year. The amendment was simple in concept-to expand the 62-year-old Universal Service Fund to help schools and libraries get discounted access to the Internet and advanced telecommunications services.
In a short period of time, the results of that simple change have been dramatic. Since the so-called E-rate (education rate) program was launched in 1998, more than $13.5 billion worth of discounts on the cost of telecommunication services, Internet access and certain kinds of networking equipment have been approved for schools and libraries and of that, $8.6 billion worth of discounts have actually been disbursed based on the poverty level of school districts. Meanwhile, the percentage of US public school classrooms connected to the Internet has grown from 27% in 1997 to more than 90% today.
The E-rate program has faced more than its share of challenges since it was implemented. But for the time being, it remains a key source of funding for network infrastructure in many schools and libraries, as well as an ongoing source of funding for the discounted telecommunications services that these institutions have come to enjoy. In fact, in many smaller communities today, the school district's network may turn out to be the best governmental network available, a fact that has not been lost on some communities when they review how best to meet their emergency communications needs.
As currently structured, the E-rate program provides discounts, ranging from 20 to 90 percent, on the cost of a full range of telecommunications and Internet access services. Although traditional Universal Service Fund programs have been limited to telecommunications services, the Clinton-era Federal Communications Commission pushed to have the Erate program extended to networking infrastructure, recognizing that many schools would not be able to take full advantage of high-speed bandwidth if they could not build the networks that would deliver it to individual classrooms and desktops.
In the program's first years, the commission's proposed framework survived a court challenge brought by the telecommunications industry, and the FCC adopted a modified approach to funding network infrastructure. Telecommunications services and Internet access would be considered "Priority 1 services," and all legitimate requests for those services would be filled, no matter the poverty level of the applicant. Then, with whatever funding was left over from the $2.25 billion worth of discounts the commission was prepared to make available each year, requests for eligible internal connections equipment and maintenance would be filled, with priority given to the neediest applicants first.
Since then, the program has provided more than $1 billion worth of discounts a year for the acquisition of hubs, routers and switches for local area networks, file servers, Public Branch Exchange and IP Telephony equipment and the related maintenance. It has also provided discounts on Wide Area Networks, which, under program rules, can only be funded if they are leased from companies operating as common carriers.
As the program's somewhat arcane rules of what is eligible for support have evolved, it has also supported the installation of networking equipment into school and library buildings as part of the provision of WAN services. Under program rules, ownership of this "on-premises equipment" must be retained by the service provider and can never revert to the school or library. At the same time, the school or library cannot have a contractual right to exclusive use of the equipment. In addition, the WAN electronics must operate independently of the school or library's own network if the services are going to qualify as a Priority One service, for which it is easier to receive discounts.
With the infusion of funding from this new source, many school technology leaders have become interested in building networks for Voice Over IP services or owning their own dark fiber networks. While the program can provide discounts on equipment that supports Voice Over IP (VoIP), if a school or library is poor enough, discounts are currently not available on the cost of VoIP services themselves or on unlit fiber, pending the outcome of a separate FCC rulemaking proceeding.
From the beginning, the E-rate program has had two, sometimes conflicting goals. On the one hand, it was designed to help schools and libraries enjoy the benefits of advanced telecommunications. At the same time, it was supposed to help promote competition in the telecommunications market.
As a result, the program has always required that the application process begin with a competitive bidding process. That, it was reasoned, would lead schools and libraries to choose the most cost-effective technology solutions to meet their education needs. Under program rules, this was to be accomplished through the posting of an FCC application, called Form 470, to the website of the Schools and Libraries Division of the Universal Service Administrative Company, the not-for-profit corporation with responsibility for the program's dayto- day management. This form must be posted for a period of 28 days before a contract is awarded. As such, it is similar to a nationally advertised Request for Proposals.
State and local government contracts can play an important role in this. Under program rules, schools and libraries can use state contracts to purchase E-rate-eligible goods and services as long as an applicant can point to a Form 470 application that began the bidding process. In some cases, state agencies take it upon themselves to post a Form 470 application at the same time they conduct procurements for products and services eligible for E-rate discounts so that schools and libraries can use the contract as the basis for purchases that could qualify for discounts. However, even when a state contract has not been bid according to program rules, it can still be used if an E-rate applicant posts its own Form 470 and then determines that the state contract price is the best price available. Many school and library officials prefer to go this route if they can because it may save them from having to develop their own Requests for Proposals.
Sometimes a local government may serve as the contracting agent for Erate eligible entities, particularly in the case of libraries. In these cases, the local government may be the entity that will post the Form 470 application because it will be the entity negotiating with potential bidders and signing a contract. However, when it comes time to qualify for discounts on the services, the agency will be able to receive discounts only on that portion of the contract that serves the eligible institution, be it a library or school.
The E-rate program is not without its challenges. All of these complex rules have led to the development of a bureaucratic process to match. Further, with more than $2 billion worth of discounts at stake each year, it did not take long for unscrupulous elements to find the program, raising concerns in recent years about the potential for waste, fraud and abuse. Nevertheless, despite the negative headlines, the program continues to enjoy strong support in Congress and among the FCC commissioners, and will continue until Congress takes affirmative steps to kill it.
In the meantime, policy makers are implementing changes that they hope will make E-rate discounts available to meet the infrastructure needs of a wider number of schools and libraries. Up until recently, school districts could, if they chose, apply for networking products for their neediest schools, and then move them after a year or so and reapply again. Starting this year, however, applicants will be barred from moving E-rate-supported equipment for a period of three years-unless a facility closes, either permanently or temporarily.
In addition, starting with the upcoming application cycle, individual sites will be able to qualify for discounts on new networking equipment in only two out of every five years. For example, schools that take advantage of the program in the next two years would be required to wait three more before qualifying for additional funding for network purchases.
Both of these changes are expected, over time, to make more discounts available to more schools-those where 35 to 49 percent of the students are eligible for the federal school lunch program. If the trends continue, they should be able to qualify for discounts of 60 to 70 percent off the costs of their network infrastructure. Some forecasting models show the threshold for approved internal connections falling even lower. (In one year, 1999, all applicants were able to qualify for networking support, no matter how rich or poor they were.)
The continued success of the E-rate program will depend, of course, on the continued ability of the school and library community to make the case that they are capable of using technology cost-effectively and for appropriate educational purposes. For the time being, at least, the nation appears to still be willing to invest a portion of its telecommunications fees in supporting those goals and state and local leaders have contributed a substantial and sophisticated component to the overall "enterprise architecture."
For information on e-Rate and filing in New York State, visit: http://www.nysl.nysed.gov/libdev/univsvc/.
About Sara Fitzgerald
Sara Fitzgerald is an award-winning journalist and worked for The Washington Post for 15 years as an editor and new-media developer. She also worked as an editor and reporter for National Journal magazine, The St. Petersburg Times, The Miami Herald and the Akron Beacon Journal. Currently, she also serves as project director of Taking TCO to the Classroom (http://www.classroomtco.org), an initiative of the Consortium for School Networking designed to help school administrators understand the concept of Total Cost of Ownership. She also directs the Consortium for School Networking Safeguarding the Wired Schoolhouse initiative (http://www.safewiredschools.org), which is designed to help school districts decide how best to ensure the online safety of their students. She is a frequent conference speaker on topics involving educational technology and online policy and serves as Vice President of Funds For Learning, LLC and is editor of all of Funds For Learning's E-rate related communications.
New Forum Event Registration Process Now Available
The NYS Forum has been working on the creation of a new, far more efficient online registration process for Forum events. The new process entails entering basic participant information only once. From that initial data entry or from information already in our database, all future event registration "forms" will be prepopulated. This will literally make online registration for future events as simple as "checking the box." This new process will allow for modifying your account information (change of address, phone number, etc.) and will provide you with an online listing of all events you are currently registered for and those you have registered for previously.
We have tested the process and it is now ready for use. When you register for the next NYS Forum event, you will automatically be directed into the new process. We hope you find it more efficient than the previous process and welcome your comments on how it might be further improved. Comments may be sent to info@nysfirm.org.
www.nysfirm.org
Please visit the NYS Forum's website for all the latest Forum related news. At "Active Forum Committees," click on the individual committees to find out who the cochairs are, their current initiatives, when the next meetings will be held and read minutes of previously held meetings.
At "Site Tools," click on "Calendar" to view our complete calendar of events. We welcome online calendar submissions at all times. Deadline for submissions to the printed calendar which appears in most issues of Open Forum Forum, is the first week of the month prior to the month of publication. You may contact us by phone at: (518) 443-5001, fax: (518) 443-5006 or email: info@nysfirm.org.
NYS Forum Creates Emerging Technologies Committee
Leadership Welcomes New Members
On November 19, 2004 the NYS Forum Executive Committee created the Emerging Technologies Committee as an evolution and "reconstitution" of the e-Government Committee. A preliminary committee has been formed and has established the principles governing this committee.
The Emerging Technologies Committee was explored by a group of public and corporate sector members, at the request of NYS Forum public sector members, to bring to the forefront new and emerging technologies that can provide value and cost saving practices to public sector entities. New and emerging technologies, represented by both IT Corporate Roundtable members and nonmembers, are introduced and implemented regularly within government and commercial organizations. Many of these new and emerging technologies have had a profound positive effect on the operations of the organizations. NYS Government can benefit greatly from the knowledge gained by these organizations related to new and emerging technologies.
Consistent with The NYS Forum maintaining its role as an efficient and vital information resource for the NYS Government, the Emerging Technologies Committee will:
The scope of the committee topics is expected to be dynamic. Members from both the public and corporate sectors as well as other Forum committee cochairs and members are encouraged to join the committee to help shape the agenda going forward. It is clear that "emerging technologies" will have implications for, and in many instances grow from, the work of other Forum committees focusing on specific issues (i.e. security). In such instances it will be the role of this new committee to work in collaboration with other committees to ensure that the new technologies research and role is thoughtfully explored and presented in a context appropriate for public sector deliberation and consideration.
Suggested Committee Priorities
Suggested Topics
Topics for discussion will be drawn from current proven technologies and from leading edge technologies. The following are potential topics for consideration:
Committee Members Being Solicited
Victor Stucchi, Senior Vice President and CIO, NYS Higher Education Services Corporation; Tony DiMento, Major Accounts Representative, Sybase, Inc. and Michael Ladd, Strategic Account Manager with Novell were confirmed by the Executive Committee as the committee cochairs. Since the committee is obviously in its formative stages, the cochairs welcome new members to assist with making both the priorities and topics addressed responsive to member concerns and information needs. Visit www.nysfirm.org and click on Emerging Technologies for more information about this committee and how to contact the co-chairs.
"The Emerging Technologies Committee can provide NYS government entities with a forum to discover and observe the benefits of leading edge technologies that are shaping the future of information sciences. Only through the practical implementation of innovative technology can NYS government improve efficiencies, while reducing the cost of serving its constituents. The Emerging Technologies Committee can search for the most promising, yet proven, technologies that can inspire the IT community within NYS government to reach beyond the borders of current infrastructure and solutions."
Tony DiMento, Committee Cochair
NYS Procurement Council Requests Removal of Procurement Law Sunset
At its meeting of November 17, 2004, the NYS Procurement Council passed a resolution to remove the June 30, 2005 sunset provision of the 1995 Procurement Stewardship Act. Acknowledging the uncertainties and likely delays in critical procurement initiatives, the specific language of the resolution included the following:
Let it be resolved that the State Procurement Council acknowledges the critical need for and value to the State of the statutory authority and dictates of §163, Purchasing Services and Commodities, and formally endorses making this law permanent and removing the June 30, 2005 sunset provision. It respectfully requests the Governor and the Legislature to advance legislation during the 2005 session to eliminate the June 30, 2005 sunset provision and make the law permanent. It further requests that such legislation be advanced and approved early in the session in support of the public procurement system that provides critical services to state agencies, local governments, not-for-profits and the business community.
The approval of this resolution is consistent with the recommendations and ongoing work of the NYS Forum's IT Procurement Committee. At that same NYS Procurement Council meeting, Walt Bikowitz, Director of the OGS Procurement Services Group, outlined five potential initiative areas for inclusion in a new Procurement Council Strategic Plan. Two of those (New IT Procurement Streamlining and IT Support for Procurement Efficiency) are of great interest to the Forum's membership and Greg Benson, Executive Director of The Forum, has reached out to OGS offering support for and involvement with pursuance of those initiatives as a continuation of the work done to date by the NYS Forum's IT Procurement Committee.
Seminar Announcement
Career Development for NYS IT Professionals
Thursday, January 27, 2005
9:15 am - 12:30 pm
Empire State Plaza Convention Center
Meeting Room 6
Albany, NY
The NYS Forum's ICEDP Committee is pleased to offer this overview seminar on Career Development for NYS IT Professionals. For many staff faced with navigating it, New York's civil service system can be confusing. The problem is compounded by the staggeringly quick evolution of the IT industry.
You'll find answers to these questions, a demonstration of how to complete the new online examination applications, and more, in this special, half-day presentation designed for IT workers at the G-14 and G-18 level.
Presenters include: Anina Ritter and Bob Gardner from the Division of Staffing Services, NYS Department of Civil Service who will provide an overview of the NYS Civil Service System. They will also discuss the IT testing program for G-14 and G-18 and advancement through the system. Eugene Pezdek, Co-chair CIO Council HR Committee, Department of Environmental Conservation, will provide an update on the CIO Council HR Committee.
Register online by Tuesday, January 25, 2005 at www.nysfirm.org
Commerce Department Report Shows Growth in Broadband Internet Access but Digital Divide Continues
A recent (dated September 2004, released in November 2004) US Commerce Department report indicates that the use of broadband technologies for accessing the Internet doubled from 2001 to 2003. The report illustrates that as of October 2003, 20% of US households use high-speed Internet connections.
The study also shows that only one in seven blacks and fewer than one in eight Hispanics lives in a household with high-speed Internet access. In contrast, one in four white Americans use high-speed Internet service. Other gaps appear between urban areas, with 40.4% of households with highspeed access, and rural areas, where only 24.7% of the Internet users have high-speed access.
The NYS Forum's 2001 white paper entitled The Digital Divide: Understanding and Addressing the Challenge, authored by Christopher Latimer, detailed the multiple dimensions of the divide and addressed the projection that broadband access would in some ways exacerbate the "gap" that was found as part of that research effort at that time. In subsequent state conferences and the more recent November 2003 e-Gov4All virtual conference cohosted by the NYS Forum, several presenters and participants urged that the US develop a more equitable approach to the deployment of broadband technologies.
Gregory L. Rhode, the ranking telecommunications official in the Clinton administration noted that, "It shows we continue to have a significant divide between urban and rural America in the infrastructure for the economy of the 21st century."
In recent months President Bush has advocated affordable access to high-speed Internet services for all Americans by 2007.
For a copy of the full report go to: http://www.ntia.doc.gov/reports/anol/index.html.
Executive Committee
Officers
Chair, Joanne Riddett, Thruway Authority
Vice-Chair, Cecelia Hamblin, Dept. of Labor
Sec./Treas. Leigh Favitta, Dormitory Authority
Members
James Bell, NYS Senate
Walter Bikowitz, OGS
Thomas R. Bodden, Assoc. of Towns of NYS
JoAnn P. Bomeisl, Insurance Dept.
Terri Daly, OFT
Sharon Dawes, CTG
Michael Donovan, OFT
Stanley France, Schoharie County
Robert Freeman, Dept. of State
Jeffrey S. Grunfeld, OSC
Christine Haile, SUNY at Albany
Roman Hedges, NYS Assembly
Karl Kelly, DMNA
Robert G. Kelly, DHCR
Kim S. McKinney, NYSLGITDA
Michael Mittleman, CIO
Janice Morris, Dept. of Civil Service
Nancy Mulholland, Workers' Comp. Board
Eugene Pezdek, DEC
Franklin Slade, Dept. of Civil Service
Timothy Spencer, DOB
Victor Stucchi, HESC
David Walsh, SED
Staff
Editor
Gregory M. Benson, Executive Director
Design & Production
Rebecca J. Buchner, Executive Assistant
Milena Ivanova,
Technical Coordinator
Editorial Office
NYS Forum
Rockefeller Institute of Government
411 State Street
Albany, NY 12203
Phone (518) 443-5001
Fax (518) 443-5006
Visit our Web Site www.nysfirm.org
E-mail info@nysfirm.org
Open Forum is a regular publication of the NYS Forum. We welcome editorial proposals and submissions.