Abstract
This early look at the E-Rate is part of a new initiative, funded
by the Department of Education, and is based on an analysis of E-Rate
administrative records covering the first two years of program operation,
that were linked to detailed national data on all public and private
schools and libraries in the U.S. Key findings indicate that public
schools have taken the most advantage of the E-Rate program. In the
first two years, the E-Rate has distributed nearly $4 billion, with
84% going to the nation's public schools. In part, this is due to
differences in the program's penetration--more than three-fourths
of all public districts and schools applied for E-Rate funds, compared
to about half of public libraries and 15% of private schools. Thus,
there were about 13,000 public 4,500 library systems participating
in the second year of the E-Rate program. The E-Rate has targeted
poor communities, encouraging higher rates of application and getting
funds to the places with the greatest need. Application rates of
the most impoverished public school districts were lower than those
of most other school districts in the first year of the program,
which may be a consequence of lower capacity in these communities.
However, application rates rose for all types of entities in the
second year of the program, and by even more for high-poverty districts
than for other types of districts. Larger districts, schools, and
libraries are more likely to apply for E-Rate discounts, and when
approved receive the student (or person). This pattern also holds
for application rates even after controlling for poverty or urban
location, suggesting that larger organizations may have more of the
human, technical, and fiscal capacity needed to apply for, and make
effective use of, the E-Rate program. Detailed tables are appended.
(AEF)
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