The following article is a brief summary of how states are
finding ways to fund technology. This information is from an
unpublished report by Hezel Associates, Syracuse, NY. This summary is
divided into two parts:
The shortage of funding for distance learning has many states
creating new ways to acquire needed equipment and programming. Private
foundations, industries and charities have been extremely helpful to K-12
education. Local telephone companies and the cable industry have been
the leaders in this area. Capital investments as well as operating
expenses are most commonly paid for in the following ways:
Federal Grants - Includes funding through Star Schools
Program,
the National Science Foundation (NSF),
U. S. Department of Education,
U. S. Department of Agriculture, U. S. Department of Energy,
Environmental Protection Agency (EPA), NASA and
the National Telecommunications and
Information Administration (NTIA).
Non-Government Grants - Many of these sources are telephone companies
such as Ameritech, Pacific
Bell, Southern New England Telephone, GTE,
Northern Telecom, South Central Bell
and Bell South. The cable
industry is also a contributor; the leaders being Channel One and Cable In The
Classroom. Other grant sources
are Annenberg/CPB
Project, Apple
Computer, IBM as well as private industries, foundations and charities
and local and regional power companies.
State General Revenue - Some states fund the technology needed for
distance learning as well as the capital investments through the state
budget. Some use matching funds as well as direct allocations.
Other sources include using lottery funds, special taxes, student fees or
loan programs.
Funding Highlights of Individual
State
Two states, Arkansas and Indiana, are offering loans to schools to buy
what is needed. Arkansas's Teacher Retirement System offers low interest
loans. The state of Indiana created a School Technology Account to offer
loans to school systems, colleges and universities.
Missouri uses a special tax to fund distance learning. The VIDEO tax --
Video Instructional
Development and Educational
Opportunity -- is a dedicated tax on video
rentals.
The residents of Oklahoma voted on two bond issues to fund distance
learning at the K-12 level and the Higher Education Level.
Arizona and Delaware use student fees to acquire equipment and
programming for distance education. Georgia, Indiana, Kentucky and
Virginia also use student fees as well as other types of moneys to fund
distance learning.
The Star
Schools Program has helped many states have access to the
equipment, programming and operational expenses associated with distance
learning.
Satellite Educational Resources Constorium (SERC) has also been an
extremely important source of funding for schools, in particular K-12
education.
Telephone company incentive regulation in Wisconsin and excess earnings
in Michigan ($22 million) and Georgia ($50 million) have resulted in
substantial funding for education teleconferencing.
In May of 1995, Governor Bush of Texas signed a bill that allocates $10
million dollars per year over ten years.
Source: A report created by Hezel Associates, copyright July 1995
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Updated: January 26, 1997