E-Rate and the Digital Divide: A Preliminary Analysis From the Integrated Studies of Educational Technology

Citation
The Urban Institute, E-Rate and the Digital Divide: A Preliminary Analysis From the Integrated Studies of Educational Technology (Sept. 21, 2000) (full-text).

Overview
This early look at the E-rate program is part of a new initiative, funded by the U.S. Department of Education, intended to expand our knowledge of how technology is changing American education. The report is based on an analysis of E-Rate administrative records covering the first two years of program operation, that were linked to detailed national data on all public and private schools and libraries in the U.S. (a combined total of nearly one million records).

The key findings from this initial study are as follows:

first two years, the E-Rate has committed nearly $4 billion (and 3rd year requests alone have exceeded this total), with 84% going to the nation's public schools.
 * Public Schools Have Taken The Most Advantage Of The E-Rate Program. In the

important to see that it has met its goals by encouraging higher rates of application from the poorest communities and getting funds to the places with the greatest need. Per student funding to school districts increases dramatically with poverty, and the most disadvantaged districts receive almost ten times as much per student as the least disadvantaged. Similar patterns hold for application rates, total funding, and other types of entities (schools and libraries).
 * The E-Rate Has Targeted Poor Communities. Given the intent of the E-Rate it is

application rates rose for all types of entities in the second year of the program, and by even more for high-poverty districts than for other types of districts.
 * Digital Divide. Application rates of the most impoverished public school districts were lower than those of most other school districts in the first year of the program. This may be a consequence of lower capacity in these communities. However,

and higher average funding per student (or person). This pattern also holds for application rates even after controlling for poverty or urban location, suggesting that larger organizations may have more of the human, technical, and fiscal capacity needed to apply for, and make effective us of, the E-Rate program.
 * Size Matters. Larger districts, schools, and libraries are more likely to apply for E-Rate discounts, and when approved receive the largest total amount of E-Rate funds