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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."

22 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.

  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.

  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.

  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. 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.

  13. 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
  14. 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.

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  15. 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? --
  16. 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
  17. 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

  18. 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.