Ed-Tech Policy

E-Rate Purchases for Chicago Schools Found Wasted

By Andrew Trotter — January 28, 2004 2 min read
  • Save to favorites
  • Print

A congressional committee is asking why $5 million in telecommunications equipment that was purchased for the Chicago public schools with federal E- rate money was never installed and has been sitting for years in a warehouse.

U.S. Rep. Billy Tauzin, R-La., the chairman of the House Energy and Commerce Committee, sent a letter dated Jan. 15 to Chicago school officials, asking for audits and other records of the district’s E-rate projects that were awarded funding in 1999 and 2000.

The committee has been investigating charges nationwide that the E-rate program, which gives schools and libraries discounts on the cost of telecommunications, is rife with waste, fraud, and abuse. Money for the $2.25 billion annual program is raised through a tax on telephone bills.

The House panel expects to hold hearings in late February or early March, committee spokesman Ken Johnson said last week.

SBC Communications Inc., the San Antonio-based vendor for the Chicago district’s E-rate-financed projects, told committee aides that about $5 million in equipment bought with money from the second and third funding years of the program was still in storage, Mr. Johnson said.

Assigning Blame

Traveling to Chicago several weeks ago, congressional investigators found cables, electronic switches, and some computers in storage, he said.

“Clearly the equipment is outdated and no longer functional—it’s a glaring example of the waste and abuse in the system,” Mr. Johnson said.

District officials pinned the blame on the vendor.

“All I can say is, we never received the equipment,” said Celeste Garrett, a spokeswoman for the 437,000-student Chicago school system. “In my mind, it’s always been sitting in an SBC warehouse—never delivered, though paid for.”

SBC spokesman Dave Pacholczyk said the equipment was purchased as part of a three-year, $159 million projectincluding $139 million in E-rate fundsto install networks at more than 300 Chicago schools.

“It’s neither’s fault,” he said. “The delay was the result of a lot of different factors.”

In general, E- rate-financed projects must be completed no later than about 16 months after the money is awarded, said Mel Blackwell, the vice president for external communications for the Universal Service Administrative Co., or USAC, the Washington-based agency that manages the program for the Federal Communications Commission.

“You cannot have equipment sitting around and never installed,” Mr. Blackwell said. “If that’s the case, we will ask for the money back. That is a violation.”

Experts note that USAC has worked recently to strengthen its systems for preventing waste, fraud, and abuse. (“FCC Issues New E-Rate Rules to Help Simplify the Program,” Jan. 14, 2004).

Still, problems persist, Mr. Johnson said.

“USAC has made some much-needed improvements,” he said. “But much more needs to be done before we’ll be satisfied.”

Related Tags:

A version of this article appeared in the January 28, 2004 edition of Education Week as E-Rate Purchases for Chicago Schools Found Wasted

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School Climate & Safety Webinar
There But Not Present: Rethinking Student Engagement
Learn how to recognize the early signs of disengagement and what the behavioral science reveals about which interventions actually work.
Content provided by Frontline Education
Teacher Preparation Webinar What Teacher Education Should Look Like in the Age of AI
Explore the current trends around the use of AI in teacher preparation and continuing education with data from the EdWeek Research Center.
English Learners Webinar How Can School Districts Better Support English Learners With Disabilities?
Join this webinar to hear recent findings from the EdWeek Research Center and discover practical strategies for improvement.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Ed-Tech Policy ‘Essential Infrastructure’: Education Groups Raise Concerns About FCC's E-Rate Review
The FCC might limit or end the program that subsidizes broadband connectivity for schools.
4 min read
Fifth and second grade students work together using Magic School AI to build presentations during class at Galileo STEM Academy in Eagle, Tuesday, Feb. 24, 2026.
Fifth and 2nd grade students work together using Magic School AI to build presentations during class at Galileo STEM Academy in Eagle, Idaho, on Feb. 24, 2026. Education groups are raising concerns that the FCC's review of a program that helps fund school internet connectivity could lead its demise.
Sarah A. Miller/Idaho Statesman via TNS
Ed-Tech Policy RFK Jr. Calls for Children to Have 'Less Screen Time and More Real Life'
Speakers at an event hosted by the Department of Health and Human Services discuss the harms of student screen time, and possible solutions.
4 min read
Robert F. Kennedy Jr., Secretary of Health and Human Services, shakes hands with the organizers of the event at the Hubert Humphrey Building in Washington on Sept. 1, 2026.
Robert F. Kennedy Jr., Secretary of Health and Human Services, shakes hands with the organizers of an event focused on the harms of student screen time at the Hubert Humphrey Building in Washington on Sept. 1, 2026. The symposium is part of HHS’s Live Real Life campaign, a national effort aimed at helping families, schools, and communities reduce harmful screen use and create more opportunities for children to engage in real-world experiences.
Sarah L. Voisin For Education Week
Ed-Tech Policy Opinion Is the Backlash Against Tech in Schools Going Too Far?
As schools rethink their relationship with tech, there are questions they should be asking.
Lina Eroh
•
5 min read
Photo illustration of an elementary-aged Caucasian boy with outstretched legs and a laptop on his lap. He is sitting on a very large cellphone propped up by four orange construction cones. The background is a montage of overlapping rectangle shapes with some ghosted images of young elementary students using a variety of tech (headphones and cellphones).
Photo illustration by Gina Tomko/Education Week + Canva
Ed-Tech Policy FCC Launches Review of E-Rate Program Amid Screen Time Debate
The end of the E-rate program would be an "existential threat" for schools, advocates say.
4 min read
Debbie Castlen, a bus monitor for Daviess County Public Schools, sits in front of a parked school bus outfitted with wifi in the parking lot at Russell Shifley Park, Wednesday, Aug. 26, 2020, in Owensboro, Ky. Castlen was working a 4-hour shift at the bus, which enables students without wifi at home to download their school assignments as the new school year begins with students working remotely.
Debbie Castlen, a bus monitor for the Daviess County public schools, sits outside a school bus equipped with Wi-Fi at Russell Shifley Park in Owensboro, Ky., on Aug. 26, 2020, where she worked a shift helping students without home internet download assignments as the school year began remotely. The setup reflects the kind of connectivity effort now under scrutiny as federal officials review the future scope of the E-rate program.
Greg Eans/The Messenger-Inquirer via AP