A HOUSE RESOLUTION Urging Congress to enact legislation to provide that funds received as universal service contributions and the universal service supports programs are not subject to certain accounting rules.
Whereas, since its creation in 1996, the E‑Rate has had overwhelming success in connecting our nation's schools and classrooms to the Internet; and
Whereas, the program continues to be a vital source of assistance in maintaining connectivity and enhancing learning; and
Whereas, prior to the program's inception, only 3% of the nation's classrooms were connected to the Internet, but today, 93% of classrooms are connected; and
Whereas, the Universal Service Administration Corporation (USAC), the entity that administers the E‑Rate, estimates that 82% of public schools and 61% of public libraries receive E‑Rate funds; and
Whereas, despite the program's remarkable success, schools and libraries still have considerable technology gaps and a continuing need for E‑Rate assistance. Each year, applications for E‑Rate funds far exceed the amount available for disbursement; and
Whereas, for the 2004 funding year alone, the Federal Communications Commission received more than 39,000 applications totaling $4.3 billion in requests to help pay for telecommunications services and Internet services, which was $2 billion more than available funding; and
Whereas, the E‑Rate program has provided schools with $10.3 billion since its creation and annually provides $2.25 billion, making it the fourth largest source of non‑State/nonlocal federal funding to schools; and
Whereas, North Carolina has received over $231 million in E‑Rate funds as of October 2004; and
Whereas, in 2004, the Federal Communications Commission began subjecting the E‑Rate program to accounting rules that effectively stopped the flow of funds to schools and libraries; and
Whereas, at the end of 2004, Congress passed a one‑year exemption from these rules for the E‑Rate program; and
Whereas, a bill (S. 241) has been introduced in the United States Senate to create a permanent exemption for the E‑Rate program; Now, therefore,
Be it resolved by the House of Representatives:
SECTION 1. The House of Representatives urges Congress to enact Senate Bill 241 to ensure that students and schools have the technology and connectivity necessary to succeed academically and to prepare tomorrow's workers.
SECTION 2.  The Principal Clerk shall transmit a certified copy of this resolution to each member of North Carolina's congressional delegation.
SECTION 3.  This resolution is effective upon adoption.