================================================================= ALAWON Volume 6, Number 63 ISSN 1069-7799 July 25, 1997 American Library Association Washington Office Newsline In this issue: (131 lines) CONGRESSIONAL BUDGET-BALANCING GIMMICK THREATENS TO DIVERT UNIVERSAL SERVICE FUNDS FROM LIBRARIES, SCHOOLS, AND RURAL AREAS: IMMEDIATE ACTION NEEDED _________________________________________________________________ CONGRESSIONAL BUDGET-BALANCING GIMMICK THREATENS TO DIVERT UNIVERSAL SERVICE FUNDS FROM LIBRARIES, SCHOOLS, AND RURAL AREAS: IMMEDIATE ACTION NEEDED THE ISSUE: Library supporters are asked to contact the White House and key members of Congress, including members of the House-Senate conference committee on H.R. 2015, the Balanced Budget Act of 1997, as soon as possible in order to fight a threat to the discount telecom rates for libraries. In very late developments on their separate tax and budget bills, both the House and Senate conferees are considering language first proposed by the House which would temporarily shift universal service funds between the years 2001 and 2002 to balance the federal budget. The funds would come from the universal service programs designed to provide support and incentives for telecommunications services to rural communities and for the telecom discounts for libraries, schools and rural health care providers. (Universal service funds have generally not been co-mingled with the U.S. Treasury.) It is expected that the conferees will be meeting in the next several days. GRASSROOTS ACTION ON THIS ISSUE IS CRITICAL AND NEEDED IMMEDIATELY. The effect of the House language would be to allow the U.S. Treasury to lend against universal service funds in 2001 and then artificially reduce disbursements to carriers in 2002. A Senate alternative would allow the Treasury to borrow all universal service funds for a short period of time -- 3-6 months. This gimmick would presumably make up for shortages in revenues originally expected from spectrum auctions. In a magical accounting trick the monies would be returned to the universal service fund from the U.S. Treasury in 2002. ALA sees this proposal is a potential threat for both rural consumers and the library, school and health care communities. It could also lead to threats to the program in other years. Sen. Jay Rockefeller (D-WV) is seeking support for a resolution which would express the Senate's disapproval of the withholding of universal service support funds. Rep. John D. Dingell (D-MI) in an open letter entitled "Show Us the Money" said: "Under this bill, affordable telephone service will be held hostage to the politics of the budget process by delaying payments for universal service." The electronic publication "Telecom A.M." at http://www.telecommunications.com/am/ reported today that the United States Telephone Association (USTA) called this effort a "Budget Gimmick". USTA President Roy Neel was quoted as saying that USTA is "greatly concerned about the proposal, because it would negatively impact America's rural and hard-to-serve local telephone customers." Industry critics also argue that universal service funds are NOT federal monies and cannot be touched by the federal government in such a manner. THE MESSAGE: Tell negotiators that rural America and schools and libraries should not be held hostage to such a budget deal. NEXT STEPS: A call or letter to the White House and to all House and Senate offices within the next few days is necessary. Those library supporters with representation on the H.R. 2015 conference committee should take special note to contact their senators and representatives. (See list below.) Library advocates in the states of Mississippi, New Mexico, and Oklahoma should make an extra effort to encourage Senators Trent Lott (R-MS), Pete Domenici (R-NM) and Don Nickles (R-OK) to sign onto the Senate resolution. Staff of the conference committee will be meeting in the next few days and negotiations among the leaders continues, so quick and assertive action is needed. The Congressional switchboard number is 202-224-3121. The White House switchboard is 202-456-1414. Congressional conferees include: Senators from the Senate Finance Committee: Pete Domenici (R-NM), Charles Grassley (R-IA), Don Nickles (R-OK), Phil Gramm (R-TX), Frank Lautenberg (D-NJ), Kent Conrad (D-ND), and Barbara Boxer (D-CA) as well as the following members of the Senate Commerce Committee: John McCain (R-AZ), Ted Stevens (R-AK), and Ernest Hollings (D-SC). Senators William Roth (R-DE), Patrick Moynihan (D-NY), Jim Jeffords (R-VT), Ted Kennedy (D-MA), Dan Coats (R-IN) and Jay Rockefeller (D-WV) will also be serving on the conference committee on other non-telecom issues. Representatives: John Kasich (R-OH), David Hobson (R-OH), Richard Armey R-TX), Tom DeLay (R-TX), Dennis Hastert (R-IL), John Spratt (D-SC), David Bonier (D-MI), and Vic Fazio (D-CA). From the House Commerce Committee the following will also serve: Thomas Bliley (R-VA), Dan Schaefer (R-CO), John Dingell (D-MI), Billy Tauzin (R-LA) and Michael Bilirakis (R-FL). Reps. William Goodling (R-PA), James Talent (R-MO), William Clay (D-MO), Hoard McKeon (R-CA), Dale Kildee (D-MI), Harris Fawell (R-IL), and Donald Payne (D-NJ) will work on various conference issues for the House Committee on Education and the Workforce. For further information please contact Lynne Bradley at the ALA Washington Office at 1-800-941-8478 or via email at leb@alawash.org. _________________________________________________________________ ALAWON is a free, irregular publication of the American Library Association Washington Office. To subscribe, send the message: subscribe ala-wo [your_firstname] [your_lastname] to listproc @ala.org. To unsubscribe, send the message: unsubscribe ala-wo to listproc@ala.org. ALAWON archives at http://www.ala.org/ washoff/alawon. Visit our Web site at http://www.alawash.org. ALA Washington Office 202.628.8410 (V) 1301 Pennsylvania Ave., NW, #403 202.628.8419 (F) Washington, DC 20004-1701 800.941.8478 (V) Lynne E. Bradley, Editor Deirdre Herman, Managing Editor Contributors: Carol C. Henderson All materials subject to copyright by the American Library Association may be reprinted or redistributed for noncommercial purposes with appropriate credits. =================================================================