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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."

36 of 387 comments (clear)

  1. Do tell!!!! by dreamchaser · · Score: 5, Funny

    What, fraud and corruption in a government run program paid for by the little guy? I find this so hard to believe!

    *note to the sarcasm imparied: my tongue was firmly in cheek.

    1. Re:Do tell!!!! by Tackhead · · Score: 4, Funny
      > What, fraud and corruption in a government run program paid for by the little guy? I find this so hard to believe!

      Still more evidence that we live in a culture of the people versus the powerful! To compensate for the waste in the programme, and to ensure that children not on the loading docks of the powerful can also ride on the information superhighway, we must double funding for this program immediately! The American people are big-hearted enough to know that it's right to chip in a couple more bucks a month on their phone bills. It's for the children!

      > *note to the sarcasm imparied: my tongue was firmly in cheek.

      I see your sarcasm and raise you cynicism.

      Prediction: We see my sarcastic comment used - without sarcasm - in the John Kerry campaign this summer.

      Side bet: After we see the Kerry spot, the Bush campaign uses the same text, but replaces the "people versus the powerful" and "ride the information superhighway" phrases with "not be left behind on the information superhighway".

  2. Leaving the dock by antic · · Score: 4, Funny

    Who said that they needed to leave the loading dock? Aren't they wireless?

    Har.

    --
    'Thats they exact same thing a banana wrench monkey.'
  3. I'd say thats fraud: by wishiwascool · · Score: 5, Insightful

    24000000 / 74000 = ~$324/NIC

    guess they weren't buying Netgear cards at that price... ouch!

    1. Re:I'd say thats fraud: by Sancho · · Score: 5, Funny

      The prices probably included thousands--if not millions--of feet of wireless ethernet cable.

  4. What was one school doing... by ArbiterOne · · Score: 4, Funny

    ... with 74000 wireless network cards? Creating an geomagnetic field disturbance for science class?

  5. Remodeling at ratepayer expense by John+Jorsett · · Score: 5, Interesting

    Shortly after this program started, one of our local schools wired itself, and oh-so-coincidentally did it in a way that required recarpeting and painting the entire place to repair the "construction damage". All paid for out of the fund of course. I'll bet there are ten times more little scams like this that add up to way more than the big noticable ones.

    1. Re:Remodeling at ratepayer expense by shione · · Score: 3, Insightful

      If they needed new carpeting and painting in the first plae but couldnt get the funds for it, I don't think it's that bad as it would have been funded by the gov't anyway.

    2. Re:Remodeling at ratepayer expense by Eccles · · Score: 3, Interesting

      This is by no means limited to schools or computers, of course. (And heck, at least they were upgrading facilities that the county might not otherwise budget for.)

      They're doing road construction near where I work. At one point, they put in part of the new road, connected it to the old, and then tore up the old road. Less than six months later, they put road back where the old road used to be, and closed the new section while they extended it. In other words, they tore up road they knew they were going to need again shortly thereafter, but undoubtedly they get paid more this way.

      --
      Ooh, a sarcasm detector. Oh, that's a real useful invention.
  6. Situation Nortmal... by BJZQ8 · · Score: 5, Insightful

    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.

    1. Re:Situation Nortmal... by BJZQ8 · · Score: 3, Interesting

      Depends on the size of the school. The larger schools, particularly in higher-poverty-rate areas, can make millions off of this, because they get huge hardware discounts...up to 90%. Smaller schools, or ones in more average-poverty-rate areas, get discounts on "leased-line" and telephone service only. In the district that I take care of, it's a definite balancing act...we will get 68% off of hardware, but ONLY if the discounts extend that far (which is a determination made by e-Rate AFTER you have done all of the work.) So if they decide to fund only down to 69%, we're screwed, and all of those trees will have been killed for naught.

  7. Heard about this on Rush Limbaugh yesterday... by JargonScott · · Score: 5, Interesting

    He was talking about a school system in Arizona (I believe) that spent some ridiculous amount on a system from IBM that was so complicated, the school system couldn't maintain it. The best part was how IBM "forsaw" that this would happen, and charged and additional $27M to build a "lavish support center" that the teachers could call for tech support.

    What the hell's wrong with these people!?! (Not IBM, I think that part is hilarious)

    --
    Nuke Gay Whales for Jesus.
    1. Re:Heard about this on Rush Limbaugh yesterday... by jamie · · Score: 4, Interesting
      I heard that same show. I don't see why this is surprising. The network cost $80 million to put together, and IBM included a $27 milllion support contract with the bid. Why is this news? Of course a very large, complicated network requires support.

      On the same Rush Limbaugh program, minutes later, a caller who claimed to be an anonymous IT expert explained that schools will put together a $500,000 network when they could just purchase a $100 cable modem. This sounds like one of the usual idiots who sees that a T1 is 1.5 Mbits/sec, local cable provider offers 1.5 Mbits/sec, hey they must be the same thing! And what expenses could there possibly be apart from bandwidth?

      The caller and host went on to agree that everyone could save a lot of money if we just got some of the "12- and 13-year old boys" in class to string up the network themselves. Rush isn't the most reliable source for information...

  8. Socialism does not work by gcaseye6677 · · Score: 5, Insightful

    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).

    1. Re:Socialism does not work by Otter · · Score: 4, Insightful
      I'll leave the flaming about socialism to others, but what clearly does not work is throwing a surcharge, tax or fine on one thing (telephone service, cigarettes, insider trading violations), accumulating a huge slush fund and then expecting that money to be used for its advertised purpose.

      It's happening again with the fines on mutual funds (that are supposed to be going to "investor education") and it will happen again as soon as the vultures start shaking money loose from the fast-food companies.

    2. Re:Socialism does not work by BJZQ8 · · Score: 3, Interesting

      What most people don't know is that a huge majority of the money doesn't go to internet access at all; it goes to the huge network of Microsoft Exchange Servers and Cisco 3725 routers that schools heap up for no reason. Additionally, things like voice mail and cell phones are covered under the program. It's really much, much bigger than most people realize...a wonderful form of corporate welfare.

  9. Dammit! by Mz6 · · Score: 4, Interesting
    Why couldn't they get access points? They could be the Robin Hood's of the Wireless World setting up AP all over the USA!

    Ahh.. i can dream atleast...

    --
    Hmmm.
  10. Internet in schools... by bludstone · · Score: 5, Interesting

    Is not an entierly bad idea, but its not being done properly.

    First off, not every kid should have an internet connection. Period. The Internet is not sesame street (which every kid SHOULD have.) In fact, I consider it more like the streets of NYC, at night, in the bad part of town.

    Its simply not safe for kids to have un-guided access while at school. Blocking programs are even worse. As such, internet connections should be wide open and subjet to constant teacher review. Perhaps a single lab, with all monitors in view of the proctor would be considered adequate.

    The rest of the money here is simply wasted. The current problems with america's education system is epidemic. Youve got underpaid, unmotivated and uneducated teachers, attempting to simply control a group of apathetic and uncaring students, who have little to no motivation and guidance from their gaurdians. The problem cannot be pinned on any single group. Everyone is messing up here, equally.

    And as Americas education system continues to collapse the nation will be seriously hurt by this. A nation of unmotivated morons cannot compete with.. well.. india. Nor should we be able to. I dont know if youve looked at the job market in minute detail, but a major part of the problem is that people are too incompetant to do the job.

    --

    no .sig
  11. This just in by cubicledrone · · Score: 5, Funny

    Education bureaucrats waste large amounts of money.

    In other news, the sky was reportedly blue this morning and there seems to be a large amount of water west of Oregon.

    More late-breaking news as it becomes available. We now return you to your regularly scheduled argument about text editors.

    --
    Business isn't willing to pay for products, innovation and careers, so we get brands, mortgage commercials and layoffs.
  12. Typical of school systems by xsupergr0verx · · Score: 3, Interesting

    I just finished high school at a public school. This is not at all uncommon. They spent $50k on a lab for the CCNA students and found the two worst teachers I have ever had to teach it. Both were underqualified and took the same 4 semester course over the space of 2 weeks. Obviously, they passed the class instead of learned the material, and it showed. Of the 18 students who started the first year (myself included), only 3 made it to the next year, Semester 3. Cheating was rampant on tests as the teacher thought his time was better spent ticking out emails and doing lesson plans for his biology classes than enforcing anti cheating measures.

    After the 15/18 failure rate, he was replaced the next year. This new teacher was even more awful. He took the course the same way, and used us remaining 3 students to "help him" rebuild the lab. This involved taking old donated computers from the A+ lab and making them seaworthy for the class. Oh, and grabbing some old desks from the woodshop on the other side of the campus and doing chimp work with a drill to make them able to stand. Of the 3 remaining second year students, all of us dropped out. Of his 24 first year students, all of them dropped out as well.

    These wastes of money were apparant, we got these expensive routers and bridges and our teachers were unable to answer simple questions about them. Useless, I think the routers ended up being shipped to another school so they could try their hand at the CCNA program.
    Oh, and other schools in the district have had the CCNA program for a few years, and are turning out graduates due to good (suprise!) teachers.

    --

    Click here for a free picture of an iPod!
  13. from cnn: by ikea5 · · Score: 3, Informative

    from cnn: The cards were purchased in 1999 for about $24 million, including supposed installation charges. The price is with installation charges included.

    1. Re:from cnn: by jmauro · · Score: 3, Insightful

      In 1999 the installation wasn't as easy or clean as it is today so it probably took a good hour. Drivers were buggy and sometimes Windows wouldn't play nice with them. The cards also cost in the neighborhood of $275-$300 to begin with. The price on those silly things has just come down in the last 2 years.

  14. Money well spent? by Blackaxis · · Score: 4, Insightful

    "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.

  15. Predictable due to design of 1996 Gore tax by XavierItzmann · · Score: 5, Insightful

    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
    1. Re:Predictable due to design of 1996 Gore tax by velo_mike · · Score: 3, Insightful
      If school districts had to spend their own money, based on *local* taxation, this sort of careless purchasing would not happen.

      Sure it would, schools are notorious for misspending money no matter how they get it. As long as it comes from mandatory taxes, this kind of waste will continue.

      --

      At the bottom of the endless pile of paper work which characterizes all regulation lies a gun.
      Alan Greenspan

  16. Come on Bush!! by Pedrito · · Score: 3, Funny

    I think we need to get George Bush more directly involved to find out what's going on here and to ask the really tough questions like, "Is our children learning?"

  17. Computers in schools by jesterzog · · Score: 3, Interesting

    It's a shame that there appears to be so much abuse of this programme. Sometimes I wonder if these types of programmes are really necessary, though. Mostly out of interest, what kinds of advantages do children actually get out of having computers in schools? By themselves the use of computers certainly doesn't cover the primary topics that schools are usually expected to teach, so presumably there's some expectation that having them there will either hugely benefit children in some other way, or will positively enhance the effects existing teaching.

    I guess that in theory children can get used to having them around. To some extent it means that computers would be available for someone who might be able to learn from them extensively if they wouldn't have been able to otherwise. But is anyone out there aware of any actual research that demonstrates that computers in schools results in a verifiable positive return? (Keeping in mind that lots of people who never had computers in school were simply trained in the workplace.)

    I don't mean to criticise, but I ask because I see a lot of people and governments claiming that it's a good thing. On the other hand, I haven't actually seen much evidence or that much that might convince me that we're much better off than we were a few years ago, when significantly fewer schools had access to computers.

    I also don't mean to imply that maybe schools shouldn't have computers at all --- only that pouring vast amounts of money into actively supporting an infrastructure that deprecates so quickly might not be very effective. If the availability of technology means that most of people will already end up having reasonable computers in their homes within the next decade anyway, then pushing them so much in schools could be quite obsolete.

  18. Re:Duplicate (who would have guessed?) by makomk · · Score: 3, Informative
    It's basically the same story [slashdot.org] as told earlier.

    No, more like a new developement in the story (though anyone who hasn't read the previous story yet should do NOW!)

  19. I worked at a school... by Fenis-Wolf · · Score: 5, Interesting

    That took advantage of this program. Our district received a massive government grant (in excess of 20 million? I think). This was of course split up between 5 seperate smaller districts in small towns. Each one of these districts had an elementary, middle school, and high school. In addition there was a Vocation School. This money from the government lead to a massive revamp of IT services in all those schools which included:
    -Connecting 5 towns to the Vocation School with redundant fiber lines
    -Purchasing top notch routing and server equipment for each of the schools
    -purchasing in excess of 200 brand new computers for each building
    -and the founding of an Internet Service Provider which server the area as a dial up provider and as the central hub that tied the schools together.
    It also led to the vocational school receiving much needed tech upgrades to CS labs and the Photo and Design Mac labs.
    When this government money is well spent, it can be a great force for good. But once a unscrupulous contracter gets his hands on those kind of funs, these massive frauds occur.

    --

  20. I hope they don't nerf this... by Raleel · · Score: 4, Interesting

    Despite the fact that there are abuses, and they may be wide spread, I was part of a group of students who wired a dozen or so schools in the town where I went to college. we did the network diagrams, organized the groups, taught people how to do patch panels and the like.

    It was in the top three most rewarding experiences in my life, and one of the most valuable for jobs skills. it was a truly unique experience, and I would hate to see this go away because some people can't freaking be honest.

    I'd be happy with oversight (lots of stuff needs oversight) but don't remove it. I heard that there was a proposal to just turn it into generic school grants or something, and I think that would be a mistake as well :)

    --
    -- Who is the bigger fool? The fool or the fool who follows him? --
  21. Vi! by suso · · Score: 3, Funny

    Vi is better.

  22. You're being sarcastic, right? by Chibi+Merrow · · Score: 4, Insightful

    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
    1. Re:You're being sarcastic, right? by ElvenMonkey · · Score: 3, Interesting

      Part of the problem is the pay that the public sector gives tends to be rather poor, and a reasonable number of those employed in the Network teams aren't that knowledgable about computers. Sure they can use windows and office, and do simple AD maintenance, but when it somes to the nitty gritty stuff they haven't got a clue and just outsource stuff or go with what salesmen say. Shockingly regularly you find that the network admin is a former teacher who's just doing it more as a hobby. I guess it goes hand in hand with the attitude that if you're a teacher you can teach anything. Sometimes they're good, they teach themselves a lot of stuff, but often seem to just learn enough to get by. I'm part of a more unusual (in education) team, with people that know what they're talking about, and can at least tell the difference between a network card and a modem. Pays still bad though. Many places just don't realise, despite how often they are told, that if they spent that little bit extra in salary they'd save a lot more in useless purchases and would probably have a much better and more secure network. The British government keeps pouring money into these different schemes, capturing headlines, but failing to solve the issue that education is overall woefully underfunded. If they'd just pour that money into education generally they'd solve way more problems, rather than earmarking it for a specific purpose.

      --
      "Joy is not in things; it is in us." Richard Wagner
  23. Apathy by mccalli · · Score: 5, Insightful
    I'm reading a lot of comments along the lines of "This is a surprise?", and "so? That's the way these things go". This is depressing.

    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

  24. My Experience With IT In Schools by $criptah · · Score: 4, Interesting

    I was a high school student several years ago; most of my family works for public schools and I have heard a lot of great stories about how IT works or does not work for teachers and students. Here is the summary.

    As far as I remember, IT was a total disaster in my school. We were able to get computers and get them setup; however there was no qualified support. There was no single person responsible for providing user assistance and doing system administration! When computers crashed, students were not really allowed to repair them, instead our librarians tried to come to the rescue; it took them hours and hours to fix a simple problem. Go figure.

    When it came to security of networks and school computers, it was even worse. First of all, every damn computer had some sort of "cop" software installed that prevented access to "bad" sites. As a result, students were not research about breast cancer or human sexuality eventhough the pages came from dot GOV. The best part about it was the fact that students usually knew more than teachers and staff; boy, it was fun seeing old ladies trying to remove a picture of a naked chick from the background.

    Then there were students who did not know what to do with computers due to the lack of knowledge. I went to a good school that was required to bus certain number of students from the inner city and other "problematic" areas in order to meet some sort of a standard. Some of these kids knew zero about computers and there was nobody in school who could teach them. At least several computers had to be replaced every year because a frustrated student's actions.

    My girlfriend work for public schools in MA. The state of IT in her schools is simply pitiful. They have the oldest technology, and virtually no help. Two guys who are in charge of the system have no interest in making things work. When the schools receive new computers or software, there is not enough training provided; therefore, nobody can use them efficiently!

    So what's the point? Well, the point is that you can waste government's money in many ways. Direct stealing is just one of them.

    1. Re:My Experience With IT In Schools by SwedishChef · · Score: 3, Interesting

      My girlfriend work for public schools in MA. The state of IT in her schools is simply pitiful. They have the oldest technology, and virtually no help.

      Ok... so why don't you volunteer a few hours a week to help them? It should be more rewarding than watching old ladies try to remove dirty pictures.

      Ten years ago, when both of my children were in public school in a rural, mostly agricultural, school district I was contacted by the teacher who also had little experience with computers and networking. On my recommendation they ran fiber between all the buildings and used Linux (Redhat 4 and then early SuSE) for email, web, and - at least later - web proxy (and filtering). That teacher told the school board that my help had saved them over $50,000 and countless hours of fruitless effort.

      I also became a reading volunteer on a program that helped younger students - especially hispanics - learn to read.

      In addition, I nstalled Linux on several computers inherited by the Schools by the Public Utility District and put them into the library for kids to check out and take home. One student (mind you, the graduating class of the HS was around 40 in any typical year) used Linux as his senior project as a direct result of puzzling out how to make that Linux computer do what he wanted 6 years earlier.

      Now my company does engineering services for this school district under the E-Rate program. But if that were gone I would still volunteer my time as a parent and member of the community. It's an easy way to make a difference.

      --
      No one ever had to evacuate a city because the solar panels broke!