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 STATEMENT  OF  COMMISSIONER  MICHAEL  J.  COPPS, 
 Re:  Schools  and  Libraries  Universal  Service  Support  Mechanism 
 The  action  we  take  today  benefits  our  children  and  communities  because  it  eliminates  all  ambiguity  and  ensures  that,  at  an  imminent  date  certain,  all  unused  E-  Rate 
 funds  will  be  available  to  connect  our  schools  and  libraries  to  the  Internet.  This  is  something  I  have  wanted  to  see  happen  since  I  arrived  at  the  Commission  one  year  ago. 
 My  interpretation  has  always  been  that  our  rules  were  already  clear  that  unspent  funds  could  be  moved  into  the  following  year’s  program.  Today’s  action  removes  any  doubts 
 that  may  previously  have  existed. 
 Although  the  Commission  has  given  itself  until  the  first  quarter  of  2003,  I  see  no  reason  why  we  cannot  complete  our  work  and  implement  any  new  rules  by  the  end  of  this 
 year.  I  am  pleased  that  the  item  now  expresses  hope  for  earlier  action.  Our  children,  our  communities,  and  our  country  deserve  no  less. 


 In  the  current  fifth  year  of  the  E-  Rate  program,  schools  and  libraries  have  requested  more  than  double  the  available  funds  to  help  bring  information  age  tools  to 
 communities  across  our  country.  All  funds  are  not  disbursed,  however  --  for  a  variety  of  administrative  reasons  or  because  individual  schools  and  libraries  do  not  fully  use  the 
 money  committed  to  them.  Our  action  today  ensures  that  E-  Rate  funds  will  stay  in  the  E-Rate  program  and  that  one  year’s  undisbursed  funds  will  be  disbursed,  in  their  entirety, 
 for  their  intended  purpose  of  connecting  America’s  schools  and  libraries. 
 This  Order  also  benefits  consumers  by  ensuring  that  they  will  not  be  asked  to  foot  what  could  have  been  significantly  increased  universal  service  contribution  levels  at  the 
 exact  same  time  that  they  will  face  increases  to  the  subscriber  line  charges  on  their  bills.  By  stabilizing  the  universal  service  fund,  this  Order  opens  a  window  of  opportunity  to 
 consider  the  future  method  for  assessing  contributions  to  universal  service.  The  benefits  of  this  Order  will  only  be  fully  realized,  however,  if  we  take  advantage  of  this 
 opportunity  to  complete  the  full  proceeding.  If  we  waste  this  chance,  consumers  will  rightfully  be  angry  when  they  face  higher  bills.  And  those  who  receive  universal  service 
 support  --  including  those  living  in  rural  areas,  those  with  low  incomes,  and  schools,  libraries  and  rural  health  care  providers  --  will  rightfully  be  angry  that  we  have  failed  to 
 ensure  a  specific,  predictable  and  sufficient  universal  service  mechanism  that  is  sustainable  into  the  future.  So  we  have  our  work  cut  out  for  us,  but  we  also  have  the 
 opportunity  to  put  universal  service  on  a  sounder  footing.  It’s  an  opportunity  we  dare  not  lose. 
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