USF Programs

The Educational Telecommunications Access Program subsidizes data lines and video links for more than 900 public and private entities, including K-12 schools, technical colleges, public libraries, juvenile correctional facilities, cooperative educational service agencies, and public museums, as well as the Wisconsin School for the Deaf and the Wisconsin Center for the Blind and Visually Impaired.

The program pays for equipment, installation costs, and a portion of monthly service costs. Copayments are based on the number and speed of participating institutions’ data lines and video links.

A consortium of telecommunications providers delivers services to participating institutions through the BadgerNet Converged Network.

That statewide data line and video link network was completed in September 2006 and also serves the State of Wisconsin and other public users.

DOA entered into a $116.7 million, multi-year agreement with the consortium in March 2005. The agreement will expire in November 2011 but may be extended for up to five additional years.

In addition to providing $14.0 million in FY 2007-08 funding for Aid to Public Library Systems, the USF also supported three other DPI programs:

• BadgerLink, which offers statewide public access to online information resources, including magazines, journals, newspapers, and reference materials;
  
  
• Newsline for the Blind, which provides sight-impaired individuals with telephone access to national and local newspapers and is operated by the National Federation of the Blind; and
  
  
• a one-time grant to La Causa Charter School in Milwaukee for library, science, and technology improvements.

The eight USF-funded programs operated by the PSC:

• provide access to basic telephone and information services for individuals with low incomes or disabilities;
  
  
• lessen the financial effect of rate increases on low-income users; and
  
  
• assist nonprofit medical clinics and public health agencies in purchasing medical telecommunications equipment.

Fund Balance

In past audits, we noted that the USF’s fund balance had increased steadily because revenue from provider assessments exceeded program expenditures. In contrast, expenditures exceed ed revenues by $5.6 million in FY 2007-08. As a result, the fund balance declined by $5.6 million and was $12.2 million as of June 30, 2008.

The decline in the fund balance is largely attributable to increased reliance on the USF as a funding source for the Aid to Public Library Systems program operated by DPI.

Until FY 2003-04, state aid to public libraries was funded entirely through general purpose revenue (GPR). In an effort to address General Fund budget shortfalls, 2003 Wisconsin Act 33 required the USF to provide $2.1 million in aid to public libraries in each year of the 2003-05 biennium. USF funding for state aid to public libraries increased under subsequent biennial budgets.

The USF became the sole funding source for the Aid to Public Library Systems program in FY 2008-09. The current biennial budget requires it to provide $16.2 million in funding for that program in FY 2009-10 and $16.7 million in FY 2010-11.

Fiscal Management Issues

In 2008, we reported that DOA did not have adequate procedures in place to ensure that FY 2006-07 copayment billings for the Educational Telecommunications Access Program were accurate (report 08-9).

Our current Report on Internal Control and Compliance notes that DOA failed to take the necessary steps to correct these copayment billings and identifies additional errors for FY 2007-08.

We also found that DOA paid almost $25,000 more than it had awarded for a grant under the Educational Telecommunications Access Program. Our Report on Internal Control and Compliance includes a recommendation that DOA give priority to addressing these errors and seek recovery of the overpayment.