Funding Sources and Methods For K-12 Distance
The entire report can be found at www.tecweb.org/pdf/K12fundde.pdf
The majority of the states are using what
has become traditional funding for distance learning. This includes
general education funds, lottery generated funds (which in most
cases does not increase the educational funding but relieves
the state funds by the amount that the lottery adds)e-rate funds,
Challenge grants, State Challenge grants, Star Schools. A limited
group relies heavily on corporate and foundation donations. The
following is a summary of the innovative funding for distance
learning at the state level.
- The Intergraph Corp., Huntsville, is providing
technology services and products that include the use of e-mail,
Webcasts, virtual notebooks, and production of CD-ROMs.
Technology Capital Levy
- A development program focuses on direct
corporate giving and corporate foundations ($3.2 billion annually).
- A state fund provides the cash matches
for grants. A state "technology
capital levy" will provide funds to schools to meet technology
State Bond Issues
- State Bond Issues fund an annual $10.4
million competitive grant program for distribution/infrastructure
systems (computers are not usually included).
- Funding from CDC's Health Alert Network
grant added distance learning coordinator position.
Capital Improvement Bonds (CIB)
- Allocates $17.5M a year to technology
for a system estimated to cost $40 million ($14M from CIB and
$3.5M for ed tech).
- eschool, asynchronous Web based courses,
for high school credit.
- Cyberspace Entrepreneurs, an offshoot
of eschool, allows schools/students to develop products and market
them on the Internet.
- A one-time Albertson Foundation donation
was used to accelerate the state's implementation of technology
Allocates technology funds through a
specific line item
Low Interest Loan Program
- Technology for Success, the specific line
item: $43.8M FY98; $46.3M FY99.
- Low Interest Loans of $60M for technology
to districts by FY 2001.
Technology leadership awards to students
$10M one-time appropriation
- Awards to students who have done innovative
Web work for their school.
- 1999 one time $10M award for technology
which districts matched at 100 percent.
Oil company legal settlement
- Funding for distance learning and graphing
calculators came from a legal settlement with an oil company.
- Most funds came from surplus money in
the state's general fund; $37.1M FY98; $25M FY99.
Bell Atlantic legal settlement
Maine Learning Technology Endowment
- The Bell Atlantic settlement has provided
over $10M for educational tech. The oversight board had the company
collect tech data from schools 98/9 and placed the findings on
a Web site.
- The Maine Legislature established the
Maine Learning Technology Endowment with $30M to start no later
than 2002/3 school year, and based on a learning technology plan
adopted by the legislature.
- 1995 - five year bond issue of $15M for
Web Price Discounts School Portal
Youth Tech Entrepreneurs- Student technicians
- FY98 $30M; FY99 $37M appropriate for technology
from the general fund.
- State Web-based virtual marketplace for
schools to get large discounts by negotiating with technology
companies - five-years estimated savings $10M.
- Youth Tech Entrepreneurs will train students
as technical support personnel and become a self-supporting program.
- Michigan Renaissance Fund, gambling revenue
supported independent economic-development fund, $7M over three
years for teacher training in technology.
Legislated Funding for Outstanding Schools
Act grant program
Legislated Funding for Technology Acquisition and Enhancement
Tax on video tape rentals
- Sixth year of funding at $5M to help schools
acquire new technology.
- Fifth year of $10M for school technology
- An older funding mechanism generated about
$5M per year from videotape rental.
Funding from Timber Harvest
- 1998 timber cutting funds on state owned
land was used to fund educational technology at $1.5M. Funds
for 2000 are not realized yet.
Star Schools CLASS Project
- High school diploma sequence with 54 Web-based
Sales tax, property and gaming taxes
- Allocated $36.1M for technology in FY98
and FY99 from two funds, infrastructure and for maintenance,
professional development, and planning.
- Bell Atlantic and Cabletron, a local cable
company, committed to providing Internet access to every school
and library building in the state, two years of free telephones,
mobile computer lab for teacher training.
General Fund legislation for Distance Learning Network Aid
- Bell Atlantic offers discounts on school
Internet access estimated savings of $13M over four years; they
will establish a statewide network.
- $50M ($40 per pupil) for Distance Learning
Network Aid for electronic communities.
Surcharges on all telephone lines
Settlement with SWB over rate overcharges.
- Surcharges on all telephone lines generated
$1M to establish teacher-training centers for technology in FY98.
- A settlement with Southwestern Bell about
rate overcharges generated $1M annually for distance learning
in FY98 and 99.
Settlement for school milk prices lawsuit
- Schools won $250,000 in a lawsuit about
school milk prices. The funds were given to the state and designated
for education technology in FY 98, with some rollover into FY
Local Business Donations
- Since July 1993, $100M appropriated for
- Connect Tennessee Students, a nonprofit
group working in partnership with the state and private businesses
to foster technology use, encourages local businesses to give
$2 per student to schools to reimburse them for Internet costs.
Fees from telecommunications companies
State textbook allotment
- FY98 appropriated $110 ($30 per pupil)
for educational technology.
- Fees collected from telecommunications
companies support the Telecommunications Infrastructure Fund
for statewide technology initiatives.
- Districts may use portions of the state
textbook allotment for electronic technology.
Used Medicaid reimbursement funds
- Used Medicaid reimbursement funds to purchase
1,600 computers for schools. The state has joined with local
businesses to develop one integrated information system for student
data, curriculum management, and financial management.
State Building Authority Funds used
- In FY 98, West Virginia appropriated $22.4M
for technology, the state's building authority spent $2.5M for
- Bell Atlantic gave $8M grant to network
State Universal Service Fund
- Provides discounted telecommunications
access for school districts through TEACH Wisconsin.