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E-Rate and the Digital Divide: A Preliminary Analysis From the Integrated Studies of Educational Technology

Prepared by the Urban Institute for the U.S. Department of Education

 

KEY FINDINGS

E-Rate Targeting Works: The Neediest Schools are Getting the Most.

  • The poorest schools (greater than 50% of students eligible for free and reduced lunch) represent only 25% of public school students but receive 60% of funds.
  • In year one, 71% of the poorest districts (75% of students eligible for free and reduced lunch) applied for E-Rate discounts compared to a national average of 79%--a divide of 8%. In year 2, 79% of the poorest districts applied for E-Rate discounts compared to a national average of 84%--the divide has decreased to 5%.
  • Per student funding ranges from $109 per student in the poorest districts (75% or more eligible for free and reduced lunch) to $12 in the wealthiest districts (1-20% eligible for free and reduced lunch). The poorest districts receive almost ten times as much per student compared to the wealthiest districts.

    Services
  • The national average for Internal Connections was $45 compared to $80 in the highest poverty districts.
  • The national average for telecom and dedicated services was $14 compared to $32 in the highest poverty districts.

    Applicants
  • 75% of the districts with 75% or more students eligible for free and reduced lunch applied for the E-Rate. They received 14% of the funds and they represent only 4% of the total number of students.
  • 84% of the districts with 50-75% or more students eligible for free and reduced lunch applied for the E-Rate. They received 46% of the funds and they represent 23% of the total number of students.

Public Schools/Districts are Benefiting from the E-Rate.

  • Three-out-of-four public schools and districts applied for the E-Rate.
  • 90% of E-Rate funds, or about $3.3 billion, are going to America’s public schools and districts.
  • Average funding per student is $41. The range, by state, is $5-$104

The E-Rate is Creating 21st Century Schools for America.

  • During the first two years of the program, the largest share of E-Rate funds (58 percent) has gone to support the acquisition of equipment and services for internal building connections, with 34 percent used for telecommunications services and 8 percent for the cost of Internet access.

Larger districts have a Higher Probability of Applying for E-Rate Discounts.

  • 97% of the largest public school districts (25,000+ students) applied for E-Rate discounts compared to 74% of the smallest public school districts (under 3,000 students).
  • In private schools, only 10% of the small schools (less than 299 students) apply for E-Rate discounts compared to 45% of large schools (1,000 or more students).

Low-Poverty Schools were Less Likely to Participate.

  • Forty-two percent of low-poverty public school districts (those with less than 1 percent of their students eligible for free lunch) participated, as compared to 79 percent of high-poverty districts (those with 75 percent or more of their students eligible). In total, the low-poverty districts received only about 2% of total E-Rate funds going to districts, in comparison to the 14% of total funds that went to the high-poverty districts.

Urban Schools are Benefiting from the E-Rate.

  • City districts represent 33% of the nation’s students and received 49% of E-Rate district funds.

Rural Schools are Benefiting from the E-Rate.

  • Seventy percent of rural schools participated in the program in the first year—growing to 75 percent in the second year of the program.
  • Rural districts with 1%-20% of their students eligible for free and reduced lunch receive about 40% more funding per student than urban districts with the same level of poverty.

Private and Parochial Schools are Benefiting from the E-Rate.

  • 91% of private schools that applied for E-Rate discounts were funded.
  • Private schools received $111 million.

Libraries are Benefiting from the E-Rate.

  • 95% of libraries that applied for E-Rate discounts were funded.
  • Libraries received $145 million.
  • Of total library funding, urban libraries receive 44% and rural libraries receive 25%.

The full report, E-Rate and the Digital Divide is available on the U.S. Department of Education web site

Note: Unless otherwise indicated, this analysis represents an average of years one and two.

Note: E-Rate and the Digital Divide is part of a larger on-going study of educational technology and its role in teaching and learning. This Integrated Studies of Educational Technology will be collecting data for a national sample of districts and schools during the ‘00-’01 school year.

 

Link to EDTech Home This page last modified March 21, 2003 (jer).