$21,684,092.59

Montgomery County Council
Capital Budget Testimony
February 10, 2009

Good evening. Thank you for the opportunity to comment on the Capital Budget. This evening I would like to speak to a source of revenue for the County Capital Budget. The source of revenue is the rebates that Montgomery County Public Schools (MCPS) receives through the E-Rate rebate program. MCPS has been participating in the E-Rate rebate program since 1998 and in that time has received $21,684,092.59 according to the Universal Service website. The E-Rate money is not required to be used for Capital Budget expenditures, but as that is the focus of this hearing I will point out the benefit that those funds could have on this budget.

$21,684,092.59 is the equivalent of modernizing an elementary school, or 2 or 3 school additions or, an unknown number of bathroom renovations, window repairs or HVAC repairs. At present Appendix G of the MCPS Capital Budget lists 47 schools that needed bathroom renovations. That list represented only HALF of the schools in need of renovations. Any school that was anywhere on the modernization list was deleted from the list of bathrooms in need of renovation. No doubt, $21 million could have completed the listed renovations and those of the schools deleted from the list, giving all students access to workable bathrooms today.

The rebates that MCPS has received over the last 11 years are available to the public on the UniversalService.org website. A search of that site shows that MCPS received the following amounts in each of the following years:

1998 $1,500,617.92
1999 $2,425,319.57
2000 $1,535,174.02
2001 $1,434,388.33
2002 $1,756,316.93
2003 $1,902,003.78
2004 $1,731,744.92
2005 $1,497,545.12
2006 $1,760,241.90
2007 $3,459,021.34
2008 $2,681,718.76

http://www.universalservice.org/sl/
Attached is a Universal Service report for 2008 payments to MCPS.

Superintendent Weast maintains that he is not required to bring these funds before the Council for appropriation but can spend these funds without Board of Education or Council action. See the November 26, 2008 Memo from Superintendent Weast to the MCPS Board of Education. Available at the following link: http://www.parentscoalitionmc.com/MCPSExpenseReports.html

Council staff, however, in a January 29th memorandum, recommends that E-Rate Rebates “come to the Council for appropriation when they are received.”

http://www.montgomerycountymd.gov/content/council/pdf/agenda/cm/2009/090202/20090202_ED01.pdf (See Page 4)

I urge you to support the recommendation of Council staff. Bring these funds to the Council table so that the use of these funds can be discussed and appropriated in public. The Capital needs of our public schools are great, and every dollar is needed. If for nothing more than to make sure that every child has access to a usable bathroom.

Thank you.
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UPDATE 4/8/09: $21,684,092.59 represents the total amount of rebates that MCPS could have received under the e-Rate Rebate program. The Universal Services website also shows how much has been disbursed to MCPS under this program. An updated disbursement number will be posted soon.