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School Internet Program Audit Shows Fraud and Waste
uid0mako writes "CNN is reporting on the abuses of E-rate. E-rate is a government-sponsored program that provides discounted Internet access and internal connection gear such as wiring, adaptors and servers to underprivileged schools. One of the incidents includes $24 million spent on 74000 wireless network cards that never left the loading dock."
24000000 / 74000 = ~$324/NIC
guess they weren't buying Netgear cards at that price... ouch!
I have watched the e-Rate program since its inception, and am neck-deep in it now...this sort of thing happens over and over again. It is a multi-billion-dollar boondoggle, typical government program. Schools are forced to hire entire staffs, or outsource, just to fill out the hundreds of pages of paperwork. The end result? Rejection, or perhaps more paperwork. But in any case, all of those billions are funneled to IT giants like Microsoft and IBM, as well as the Telecom companies that are given "preference" for their stone-age T1 technology. Want to put in your own glass fiber between buildings? Not covered by e-Rate, because that would step on the phone company's toes. Better to lease a dozen T1 lines, in their eyes. The whole thing needs to be gamma-irradiated and shot into deep space...and the "Universal Service Fee" that covers it eliminated.
I'll keep this in mind when I get my next phone bill and notice the 30% taxes added on to it. At least half of that is the "Gore Tax", which was put to such great use as we see. Now that almost all American public schools have their intarweb installed, I see no reason to continue this financial rape of the public. This program should be phased out, since it has clearly outlived its usefulness. It's nothing less than irresponsible to suggest that a federal tax be used to pay the monthly internet bills for schools and libraries (neither of which are supposed to be federally controlled to begin with).
"The program, run by the FCC and administered by a not-for-profit corporation, is widely credited for helping poor and rural schools get wired, giving students better learning tools." ..
Of all the problems with poor and rural schools, they spend money on this? Technology is a good thing, but when my rural school only had an 800 average SAT score (of the people motivated enough to take it), you have to wonder why resources get wasted like this.
a) 1996 - Gore/Clinton tax *your* phone bill to "put internet on every school"
b) Any school can spend whatever money and get the ERATE fund to reimburse the school
Waste and abuse happens because this tax should not even have existed to begin with. If school districts had to spend their own money, based on *local* taxation, this sort of careless purchasing would not happen.
You vote for politicians who introduce taxes, you bring this upon yourself.
The next pasture is always greener
I sure hope you're being sarcastic and that's not a kneejerk reaction. The problem isn't companies, the problem is SCHOOLS being morons and taking all this "free money" and spending it on multi-million dollar solutions when a $100 switch and a box of cable would fit their needs.
The real problem is that this all paid for through a tax on your phone bill (think: Universal Service Fee, meaning most people never realize how much they pay for it) and the structuring of the program encourages waste. "Buy the biggest and best things that you can so we can get good PR for helping the children!" Meanwhile, anyone who questions the program's merits stands a chance of being labeled "against education" or even a racist, since the program (supposedly) exists to help poorer schools.
A better article on this can be found at the New York Times.
Maxim: People cannot follow directions.
Increases in truth directly with the length of time spent explaining them
Look - a clear and serious fraud has been commited. People should be livid about this, even more so if this kind of behaviour is the norm. Just because it always happens doesn't make it right, and only pressure and accountability will ever sort the situation out. Shrugging the shoulders and going "so?" is really not all that helpful.
Cheers,
Ian