E-rate weathers change.

E-rate, the federal telecommunications program that was on hold for four months, finally resumed spending in November. Cash problems had bogged it down and put off more than $400 million in projects from 2003 and 2004.

Since 1996, E-rate has helped connect 92 percent of classrooms to the Internet at discounts that are funded by fees on telecommunications services.

Last summer, the Federal Communications Commission, the agency that oversees E-rate, decided the program should adopt Treasury Fund accounting practices.

With such accounting, the program couldn't promise money before it was received. So the Universal Service Administrative Company, which administers the program for FCC, could not write commitment letters telling districts how much they would receive until the money was collected.

But the FCC recently changed that. The federal program has approved $24.2 million in new funding for projects and services.

The Schools and Libraries Division of USAC promised funding in 194 commitment letters to schools and libraries in late November, FCC states. And USAC and FCC are to work together to ensure that funding commitments are made as money is available.

Other letters will be sent for additional funding year 2004 commitments for which cash is available. Additional funding year 2004 commitments will be issued in the future as money is available, the Fee says.

Although the moratorium is over, it will take time to clean up the backlog of more than 4,000 school and library requests.

A force that contributed to a drop in E-rate coffers was a new cap on USAC collections from telecommunications companies from August to November 2004. In the past, USAC had no cap and calculated a rate sufficient to generate $2.25 billion in annual discounts to help schools and libraries nationwide.

Mickey Revenaugh, vice president at Connections Academy, helped run E-rate at the onset and says the program has succeeded in its initial mission. Now, she says, USAC needs to sustain gains and determine future needs. such as infrastructure improvements and new technology, that can be met with E-rate funds, Mary Kusler, senior legislative specialist with American Association of School Administrators. says, "There are connectivity issues that E-rate can meet." For example, E-rate funds can be applied toward wireless networks.