Statement in Congressional Record by Sen. Conrad Burns. Re: introduction of S 1004 IS, the "Schools and Libraries Internet Access Act of 1999," an e-rate reform bill. Date: May 11, 1999. Source: Congressional Record, May 11, 1999, page S5051.

SCHOOLS AND LIBRARIES INTERNET ACCESS ACT OF 1999

Mr. BURNS. Mr. President, I am pleased to be introducing today, along with Senator Inhofe, the Schools and Libraries Internet Access Act of 1999. This bill addresses a timely and critical issue, that of the implementation of the schools and libraries program. Recently, new charges began appearing on people's telephone bills. These are the charges which providers are assessing to pay for the expansion of `universal service' in the form of the `schools and libraries' program. This bill is especially timely since Chairman Kennard announced last week that he's calling for a $1 billion annual increase in the e-rate program. That's an additional Billion in taxes that would be enacted without any review or commentary in Congress, and, most importantly, without a vote by our citizens' representatives. Congress needs to step to the plate and provide specific funding for this program that we all feel is important for rural and low-income regions.

I don't think anyone in the Senate ever thought that the limited language which we included in the 1996 Act would be used to create a massive new entitlement program through universal service. Universal service has historically meant the provision of telecommunications services to all Americans, regardless of geographical location. The FCC has expanded the definition of universal service to include broad-ranging social programs, which has caused the Commission's progress toward maintaining universal service to be delayed. While such goals as providing Internet access to schools and libraries may be laudable, they were never meant to be part of universal service as it has traditionally been known. Indeed, a huge additional burden has been placed on rural states like Montana in meeting these newfound definitions.

I want to make it clear, however, that I have always supported the goal of connecting all of our schools to the Internet, as well as the provision of advanced telecommunications services to rural health care centers. I just felt that it was wrong to fund these programs on the backs of American consumers. It is with this in mind that I have proposed using an outdated 3 percent excise tax on telephones to fund the schools and libraries and rural health care programs. Currently, none of the money collected by the tax goes to fund telephone service for Americans.

This tax was designed to fund World War I and was instituted in an era where telephones were a luxury. Well, World War I should be paid for by now and phones are certainly no longer a luxury item. The 3 percent tax was kept alive to provide revenue to offset the deficit. In today's climate of budgetary surplus, this justification no longer makes sense. My proposal calls for cutting the excise tax by two-thirds and using the remaining third to fund the schools and libraries program and the rural health care program.

This proposal is a win/win solution. It's a win for consumers, since it would eliminate the need for new charges on telephone service. It's a win for taxpayers, who would see billions of dollars in current taxes eliminated. It's a win for our schools, libraries and rural health care centers, who would see their programs fully funded without threatening universal service. With the support of the other members of Congress and the leadership of the Senate, I believe this proposal can solve the current crisis we face in funding the schools and libraries and rural health care programs.

The Schools and Libraries Internet Access Act of 1999 is an important effort to shape the future of online access. I strongly encourage my colleagues to support the passage of this bill.