Executive Summary

Funding Technology in New Jersey's Schools
and Public Libraries By the End of the Century

Computers and other forms of technology are the modern day tools of America's society and culture, and as such, are as much needed in classrooms as books, periodicals, maps, tape recorders, VCR's, blackboards, pencils, papers, and even teachers. It is no longer possible for a teacher and a textbook to be the sole sources of information.

- Leonard Margolis, Director, Academy for the Advancement of Science & Technology, Bergen County Technical Schools, Hackensack, NJ, at the Northeast Forum on the National Plan for Technology in Education (June 6, 1995). (http://www.ed.gov/Technology/Plan/RegionalForums/WhPlainshtml)

The Federal Telecommunication Act of 1996 (the Act) establishes a new universal service mandate so that everyone, whether rich or poor, has access to educational and information resources available through the Internet and distance learning opportunities. The 1996 Act contains specific mandates to:

How New Jersey realizes this mandate and the extent to which State residents are connected to the information network will be a major test of whether we can develop a communications system that serves public needs and reduces social and economic inequities.

In this report, the Ratepayer Advocate proposes a comprehensive technology model for New Jersey's K-12 schools and public libraries to meet the needs of students, teachers, and citizens, allow for local control of technology planning and educational use, and provide for future information and educational technology development --- while making cost-effective use of the limited public and private funds available to pay for these systems.

The goals of this plan include: the establishment of a sufficient technological capability within schools so that students and school districts can obtain the benefits of networked learning opportunities; the provision of an appropriate number of computers in classrooms so that computer access is more than a dream to all New Jersey students; teacher training; and, the establishment of local libraries as technology centers that can be used by all residents to access information and job resources on the Internet.

Specifically, this report proposes a five-year cost model to provide all students in K-12 public schools with access to the Internet and the voice, data and video products within the premises that enhance distance learning. It also includes an estimate of the cost for K-12 non-public schools. Finally, the report suggests a cost model to provide all public libraries in the state with technology products and services needed to access the Internet and e-mail.

The cost model described within this report requires an investment of $2.860 billion over a five-year period -- $2.476 billion for public schools, $332 million for not-for-profit schools, and $52 million for public libraries -- but concludes that only $1.377 billion in new funding is required for public schools. This report also concludes that appropriate cost reduction initiatives and state and federal technology funds could provide the remaining $1.099 billion needed over five years to meet public school technology needs as described herein.

While these figures are significant, the new funding is only $232 per public school student per year. This represents about three percent of the current total annual cost per student in New Jersey. The cost to provide a technology-rich library system will be about $1.32 per patron per year.

The good news is that New Jersey is well-positioned to meet the technology challenges facing our schools and libraries. A recently completed survey provides the first comprehensive look at technology currently in New Jersey's schools.1 With slightly more than 50 percent of all schools responding, the survey found that public schools already provide an average of one Internet-compatible computer for every nine students. The value of the installed technology products described in the survey results have been accounted for in determining the new funding requirements.

Recent state and federal initiatives are also bolstering existing funding for education technology, with the Comprehensive Educational Improvement and Financing Act of 1996 providing $50 million per year for five years for the provision of hardware, software, training and support.

But even with these achievements, which indicate the State's commitment to the development of an educational technology infrastructure, New Jersey schools will only be able to make meaningful use of these new technologies if stakeholders continue to take advantage of all funding opportunities.

Every state in the nation is currently facing these technology funding challenges. Public/private partnerships, as well as predictable sources of long-term funding, will be crucial to each State's success in meeting the technology needs of its residents. This report reviews various funding options selected by other states, including allocations from general funds, state and local bond initiatives, dedicated tax sources, earnings from state lotteries, telecommunications deregulation funds, private industry contributions, and, most recently, tax exempt leasing funds.

School and library discounts for advanced telecommunications services also will reduce the total figure to some extent. The FCC's universal service rules will make discounts available to public and not-for-profit schools and public libraries beginning in January 1998. School and library discounts for internet access tariff rates and internal connection will range from 20% to 90%, with schools and libraries located in economically disadvantaged areas eligible for the greater discounts.

This report also identifies more than 30 initiatives that could reduce costs by approximately $250 million. These initiatives range from encouraging the reallocation of existing funds to utilization of technology leasing programs, to encouraging school districts to form regional purchase cooperatives.

If New Jersey fails to ensure that all citizens have access to the educational and information resources presently represented by the Internet and distance learning technologies, we will be lowering our horizons and limiting our children's economic and educational opportunities. While "universal service" will not be able to provide an in-home computer to all who would like to use the Internet, it will measurably increase the ability of all citizens, including low-income residents and their families, to access the Internet through schools and libraries.

This Senate Special Study Committee can provide the leadership necessary to provide New Jersey students with the tools needed for the 21st century. Further, state government can provide the momentum to support and enhance current scattered school and community efforts to create networked education opportunities for all students. The Ratepayer Advocate would be pleased to provide assistance in this effort.

Developed with the assistance of the New Jersey Department of Education ("DOE") and the New Jersey Library Association, and with careful consideration of other state and federal technology planning efforts, this proposal seeks to meet the needs of New Jersey schools and libraries while making prudent use of a multi-year public investment in technology. The systems proposed in this technology plan are designed to provide real benefits to education in schools and information access in libraries, in a way that shares costs whenever possible and uses technology efficiently and effectively.

Finally, this report summarizes the Ratepayer Advocate's universal service proposal filed with the Board of Public Utilities ("Board" or "BPU") on December 11, 1996, regarding establishment of state discounts for telecommunications services provided to New Jersey schools and libraries. It will be considered by the Board as part of its generic investigation into local competition.

This proposal assumes that technology alone will not educate our children, create job opportunities, or reduce social inequities. However, distance learning and networked computer learning, are critical tools in accomplishing these goals when implemented with adequate preparation by teachers who receive support and training. This cost and funding plan assumes that these resources and attributes can and will exist and that the cost to the State will be far less expensive than the failure to provide the next generation with preparation for the future.

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Footnotes

1 Quality Education Data (QED), in partnership with the New Jersey Department of Education, collected and compiled data from New Jersey's public and non-public schools and disseminated the results, the New Jersey State Technology Survey Report, on March 5, 1997. Back