roundtable: Info on NTIA's FY 1998 budget

roundtable: Info on NTIA's FY 1998 budget

Info on NTIA's FY 1998 budget

Sarah Maloney (smaloney@ntia.doc.gov)
Thu, 17 Jul 1997 16:43:26 -0400 

Message-Id: <s3ce4bb6.073@ntia.doc.gov>
Date: Thu, 17 Jul 1997 16:43:26 -0400
From: Sarah Maloney <smaloney@ntia.doc.gov>
To: roundtable@cni.org
Subject: Info on NTIA's FY 1998 budget


In response to the many inquiries that have been received, the following
informaiton outlines the status of NTIA's FY 1998 budget.  In addition,
attached is a fact sheet that addresses the issue of TIIAP funding in 
light of the new universal service fund.  Updated information may be 
found on NTIA's home page at www.ntia.doc.gov.  For questions, please
contact Paige Darden at 202-482-7002.

NTIA HOME Page:
   NTIA Funding for 1998
       Status
       TIIAP: Reaction to Proposed Funding Level
       TIIAP vs. Universal Service Fund
       Assistant Secretary Irving's Appeal

     NTIA FUNDING FOR 1998


UPDATE AS OF:  JULY 17, 1997

NTIA receives appropriations from the Congress under three separate
accounts:  Information Infrastructure Grants, which funds the
Telecommunications and Information Infrastructure Assistance Program
(TIIAP);  Salaries and Expenses (S&E), which funds NTIA's domestic
and international policy offices, spectrum management activities and
telecommunications research; and Public Broadcasting  Facilities,
Planning and Construction (PTFP), which provides matching grants for
the planning and construction of public broadcasting facilities.  The
current status of 1998 funding for these accounts is shown below:


                          $ in Thousands

                         REQUEST       HOUSE       SENATE  COMMITTEE

TIIAP                    $36,000      $21,490             $11,000
S&E                      $18,074      $17,100             $16,574
PTFP                       -0-        $15,250             $25,000
TOTAL                    $54,074      $53,840             $52,574


NEXT STEPS:  Senate floor consideration of the Commerce, Justice,
State Appropriations bill (S. 1022) is now expected early the week of
July 21.  Senator Dorgan (D-ND) is expected to offer an amendment on
the Senate floor to restore $10 million for TIIAP, bringing the total
proposed to $21.0 million for 1998.



            TIIAP: REACTION TO PROPOSED FUNDING LEVEL

The full Senate, possibly as early as July 22, will consider amendments
to bring the recommended level of TIIAP 1998 funding to $21.0 million.
  
The 1998 funding level proposed by the Senate Appropriations
Committee of $11 million for TIIAP is inadequate given the program's
widespread and extensive benefits. 

     TIIAP:
          Focuses on the use of information technology by providing seed
          money for innovative model projects
          Brings computer literacy and skills to millions of Americans who
             would not otherwise have access
          Improves our children's education
          Upgrades police and fire protection available to our communities
          Mends disparities in the delivery of medical care
          Enables state and local governments to reinvent social services
             and help individuals make the transition from welfare to work
 
     Demand for TIIAP:
          In 1997, TIIAP received over 900 proposals requesting a total of 
             $354 million
          Program has been able to fund fewer than one out of every 13
            organizations that apply

By the year 2000, 60 percent of our Nation's new jobs will require skills
currently held by only 20 percent of the population.  TIIAP model projects
are closing this gap and helping citizens gain the skills needed to
prepare for the demands of a competitive 21st century workplace.

                 TIIAP VS. UNIVERSAL SERVICE FUND

A possible misconception is that TIIAP funds could be reduced because
the Universal Service Fund has been established as required by the
Telecommunications Act of 1996.  The new universal service fund in no
way lessens the need for TIIAP grants.

Universal Service Fund: Subsidizes only a small fraction of the    
telecommunications-related costs associated with connecting to the    
information superhighway; typically a total of 10-15 percent of the     
real costs associated with using the technology effectively.

TIIAP: Supports use of the information superhighway through     
personal computers, modems, network equipment, end user training,
software, network design and system maintenance, as well as costs
associated with project evaluation and dissemination of project results. 
Most if not all of  these costs are ineligible under the Universal Service
Fund.

Universal Service Fund: Only K-12 schools, libraries, and non-profit
rural health care providers are eligible for discounts.

TIIAP: In addition to a small number of TIIAP awards to schools and
libraries, TIIAP supports lifelong learning through community colleges,
universities, technical schools, community center, museums, and others;
provides grants for public safety applications   police, fire, and
emergency rescue; demonstrates programs that make sure children
have computer access after the school building closes for the day; and
works with state and local governments to design innovative social
service programs.

Universal Service Fund: Is a broad program designed to enable schools,
libraries and non-profit rural health care providers to connect to the
information superhighway.

TIIAP: Is a concentrated effort to develop innovative model projects of
community use of information technology 

Less than 1 percent of the project costs supported by TIIAP in 1996
would  be eligible for universal service subsidies.


Sarah Maloney
<smaloney@ntia.doc.gov>

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