| Christmas arrived two days early for E-rate
applicants, vendors, and administrators when President Bush signed a bill into
law which will temporarily exempt the Universal Service Fund from the
Anti-Deficiency Act ("ADA"). The bill, which was passed by both houses of
Congress earlier in the month, will permit the SLD to make funding commitments
as applications are approved, without requiring that every commitment be
immediately backed by unobligated cash on hand. This puts the program back on
the same footing under which it had been operating since 1998 until last
August's funding freeze.
Like Santa, whose arrival is eagerly anticipated, but expected, the President's
signature was not a surprise. The bill (H.R. 5419) was widely supported by the
applicant and vendor communities as well as by both parties.
By the time the exemption expires on December 31, 2005, the SLD should be able
to complete most FY 2004 funding and make substantial progress on FY 2005
funding. What will happen in 2006 is open for question, but E-rate funding for
now is assured.
The first present to arrive, which probably would have been delivered even
without the President's signature, missed Christmas by two days. Wave 36 for FY
2003 was released on Monday, December 27, 2004. Funding in this wave was over
$23.1 million for 29 applications. Total funding for FY 2003 now stands at $2.6
billion. In New York State, two applicants (Buffalo and Newburgh) received a
total of $5.3 million. The cumulative New York total for FY 2003 is now $436
million.
The really big seasonal E-rate present, Wave 11 for FY 2004, is expected to
arrive this week or next. With the ADA exemption in place, the SLD is in the
position to commit hundreds of millions of dollars for applications that have
been approved, but backlogged. This should include the resumption of Internal
Connections commitments — at least at the 90% level and, perhaps, down to the
81% level if the FCC approves a recent SLD recommendation — which has been
languishing in an "As Yet Unfunded" pile under the tree.
It should be, indeed: A Happy New Year to All!
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