{"id":422,"date":"2014-02-02T23:19:54","date_gmt":"2014-02-03T06:19:54","guid":{"rendered":"http:\/\/danschmidtforsenate.com\/blog\/?p=422"},"modified":"2017-01-04T12:14:17","modified_gmt":"2017-01-04T19:14:17","slug":"the-mess-we-are-in-erate-ien-ena-usac-and-the-idaho-taxpayer","status":"publish","type":"post","link":"https:\/\/danschmidtforsenate.com\/blog\/?p=422","title":{"rendered":"The Mess we are in:  eRate, IEN, ENA, USAC and the Idaho Taxpayer"},"content":{"rendered":"<p><a href=\"https:\/\/danschmidtforsenate.com\/blog\/wp-content\/uploads\/2014\/02\/teresalunajpg-f0bc882a6af90fcc.jpg\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-423\" src=\"https:\/\/danschmidtforsenate.com\/blog\/wp-content\/uploads\/2014\/02\/teresalunajpg-f0bc882a6af90fcc.jpg\" alt=\"teresalunajpg-f0bc882a6af90fcc\" width=\"1024\" height=\"788\" srcset=\"https:\/\/danschmidtforsenate.com\/blog\/wp-content\/uploads\/2014\/02\/teresalunajpg-f0bc882a6af90fcc.jpg 1024w, https:\/\/danschmidtforsenate.com\/blog\/wp-content\/uploads\/2014\/02\/teresalunajpg-f0bc882a6af90fcc-300x230.jpg 300w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<p>This week in JFAC we heard from Department of Administration Director Teresa Luna that we need $7 million to keep our schools connected to the internet. She is also asking for another $7 million for 2015. She is asking Idaho taxpayers to pay for something that previously has been paid by a telephone tax. She did her best to explain this situation, but honestly it wasn\u2019t clear at the time to me how we got here, but I really wasn\u2019t too surprised, since when I read a Supreme Court decision last spring I got concerned. It is a complicated story with many acronyms so let\u2019s get started.<\/p>\n<p>Last March Betsy <a href=\"http:\/\/www.spokesman.com\/blogs\/boise\/2013\/apr\/01\/idaho-contracts-under-scrutiny-amid-ruling-report\/\">wrote<\/a> about an Idaho Supreme Court <a href=\"http:\/\/www.isc.idaho.gov\/opinions\/38735.pdf\">decision<\/a>. This goes back to before I was even running for office, 2009 when players were vying for a state wide contract to get broadband to schools. The Court said the contract had been awarded incorrectly and should be set aside, \u201cfor further proceedings\u201d. I wondered quite a bit about the concurring judges reference to the charges not filed, but I was mainly worried about what this meant to Idaho taxpayers.<\/p>\n<p>How does payment for broadband to the schools work? If you get lost or confused, click on a link for further reading. Here come the acronyms. On your phone bill you will see a small tax. This is collected by <a href=\"http:\/\/www.fcc.gov\/\">the FCC<\/a> and administered by <a href=\"http:\/\/www.usac.org\/default.aspx\">USAC<\/a>. Newspaper reporters, even Director Luna called this &#8220;federal money&#8221; but it actually isn&#8217;t, the initials make one think of Uncle Sam, but it is the Universal Services Administration Company. Schools and libraries can apply to USAC for <a href=\"http:\/\/en.wikipedia.org\/wiki\/E-Rate\">E-Rate<\/a> payments for approved services. The application is awarded based on the cost of broadband services and the percent of <a href=\"http:\/\/www.fns.usda.gov\/cnd\/Governance\/notices\/iegs\/IEGs.htm\">free and reduced lunch<\/a> students in the district. In Idaho this can range from 50% to 95% eligible, but the state average is about 75%, a measure of our poverty. Schools can receive E-Rate money directly or have it sent to a service provider. Before the legislature made Idaho Education Network (IEN) \u00a0<a href=\"http:\/\/legislature.idaho.gov\/idstat\/Title67\/T67CH57SECT67-5745D.htm\">a law<\/a>, many schools were getting the money and paying local service providers, but with IEN, the plan was to develop a statewide network and have the contractor receive the E-Rate payments directly; thus the contract in 2009 between Idaho Department of Administration, Qwest and <a href=\"http:\/\/www.ena.com\/solutions\/\">ENA<\/a>.\u00a0 <a href=\"http:\/\/www.syringanetworks.net\/about\/history\/\">Syringa<\/a> bid on the contract but got pushed out, even though they had the lowest bid and were an Idaho company; thus <a href=\"http:\/\/idahobusinessreview.com\/2013\/04\/02\/idaho-contracts-under-scrutiny-amid-syringa-networks-ruling-report\/\">the lawsuit<\/a> that led to the March Supreme Court decision. ENA has been collecting the E-Rate dollars from USAC up until the payments were shut off in May of 2013, after the Idaho Supreme Court decision.<\/p>\n<p>By the way, ENA was also awarded <a href=\"http:\/\/www.idahostatesman.com\/2013\/07\/26\/2672303\/luna-defends-wireless-contract.html\">the multi-year wireless contract<\/a> for grade schools this last summer by Superintendent Tom Luna (brother of Teresa Luna) over competing and lower bidding Idaho companies.<\/p>\n<p>As best I can tell from 2009 to 2012 ENA has received about $7 million from USAC in E-Rate payments. So far this year they have not received about $7M, after the payments were held. \u00a0If the Supreme Court decision is upheld and the contract is invalid, I am afraid the state will need to reimburse all the E-Rate payments sent to ENA. I can respect USAC being prudent about payments since they are <a href=\"http:\/\/www.sl.universalservice.org\/reference\/whistle.asp\">under scrutiny<\/a> themselves.<\/p>\n<p>I hope the citizens of Idaho can get some clarity on this mess. I am working on it.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This week in JFAC we heard from Department of Administration Director Teresa Luna that we need $7 million to keep our schools connected to the internet. She is also asking for another $7 million for 2015. She is asking Idaho &hellip; <a href=\"https:\/\/danschmidtforsenate.com\/blog\/?p=422\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,6],"tags":[],"_links":{"self":[{"href":"https:\/\/danschmidtforsenate.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/422"}],"collection":[{"href":"https:\/\/danschmidtforsenate.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/danschmidtforsenate.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/danschmidtforsenate.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/danschmidtforsenate.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=422"}],"version-history":[{"count":3,"href":"https:\/\/danschmidtforsenate.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/422\/revisions"}],"predecessor-version":[{"id":677,"href":"https:\/\/danschmidtforsenate.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/422\/revisions\/677"}],"wp:attachment":[{"href":"https:\/\/danschmidtforsenate.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/danschmidtforsenate.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/danschmidtforsenate.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}