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1998

E-rate Update - Proposed Restructuring Statement
Message Posted May 15, 1998

SLC Releases Statement on Proposed Restructuring

Today, the Schools and Libraries Corporation released a statement concerning the FCC's proposal to Congress that the SLC be combined with USAC. I, personally, do not believe this proposal or reorganization will have an impact on the E-rate program and should not be a concern to applicants.
-- Julie

"OUR MISSION WILL NOT CHANGE, THOUGH OUR STRUCTURE MAY"

On May 8, the FCC released a Report to Congress proposing a restructuring of the Schools and Libraries Corporation (SLC) and the Rural Health Care Corporation (RHCC) that would combine them with the Universal Service Administrative Corporation (USAC). This proposal would create a single entity responsible for administering universal service support for schools, libraries, and rural health care providers.

The FCC's action is not final and it does not affect the operations of SLC, nor does it affect the requests made by applicants for the E-rate Funds. In fact, no changes will be made to SLC until at least January 1, 1999.

In their Report, the agency requested that USAC, the SLC and the RHCC jointly prepare a reorganization proposal that would achieve organizational efficiency and administrative accountability while preserving the distinct missions and integrity of the schools and libraries and rural health care support mechanisms.

In response to the Report, SLC CEO, Ira Fishman stated, 'The SLC's mission is to deliver the benefits of the new Universal Service Fund for Schools and Libraries to every classroom and community in the country in an efficient and pro-competitive manner. Our mission will not change even though our structure may. We are pleased that the FCC and Congress are moving forward on resolving this matter, so that everyone can stay focused on what is most important: helping our nation*s schools and libraries participate in the Information Age.'

The SLC has received over 30,000 applications for discounts that will be available this year on telecommunications services, Internet access, and internal connections. The SLC is actively working with these applicants to process their requests. A reminder to applicants that the application process for the 1999 funding cycle will begin in July - just
two months from now.

-- SLC

---------------------------------------------------------------
Julie L. Tritt
Office of Educational Technology 717/787-5820
Pennsylvania Department of Education 717/787-7222 (fax)
333 Market Street, 10th Floor
Harrisburg, PA 17126

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