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US West bill's good deal for schools By DAVID PRESZLER The technological possibilities are eye-catching. How technology money would be spent Here's a breakdown of how $50 million in technology improvements to schools proposed in Senate Bill 622 would be spent, according to Tom Cook of the Oregon Public Education Network: $1.1 million for dedicated Internet access lines to the 114 schools in the state that are without them, including about 20 in Jackson, Josephine and Klamath counties. $1.5 million over two years to pay for Internet service contracts for elementary, middle and high schools statewide. $500,000 over two years for equipment for the Oregon Public Education Network to coordinate the schools statewide. $250,000 for a pilot project to explore online film and video servers. The servers transmit digitized educational films to schools within a district. $13.4 million over the two years to wire each school building in the state with a T-1, a circuit that brings high-speed bandwidth for Internet connections. That breaks down to $5,400 per year per building, the cost of a T-1 under the fixed state contract. Schools that already have T-1s would use the money to offset the costs of maintaining them. $6.1 million over two years to be spent on two-way video systems for each of the 199 high schools in the state and all 21 of the education service district offices. Another $1.1 million would go toward wiring the video circuits to make the systems work. $1.4 million over two years to purchase equipment for the state administrative office, which would act as a statewide hub. $24.65 million over two years for school districts to spend on technology investments as they choose. The money would be divided based on enrollment but no district would get less than $25,000 to ensure that smaller districts get a meaningful amount. Dedicated Internet connections for every school in Oregon. Two-way, interactive video in every high school. A program to explore ways that educational videos could be electronically shared by schools in a district, cutting costs and expanding access to resources. And, to top it off, more equal opportunity for all Oregon communities to reap the commercial benefits of the high-tech age. These are some of the $120 million worth of benefits cash-strapped schools and technology-deprived rural areas would reap from a bill poised for approval by the state Legislature. And none of it coming out of the state kitty. The catch? More pricing flexibility for US West that the company wants -- and that critics fear will allow the phone giant to overcharge customers for years. Final debate on Senate Bill 622 is scheduled to begin today in the Senate and will likely move to the House after that. Both houses passed an earlier version of the bill and worked out details with Gov. John Kitzhaber's staff earlier this week to garner his support. Under the bill, state regulators would set a price range that US West could charge for services and give the utility the freedom to set prices within that range. It would cap prices at current levels and set price floors to keep the company from unfairly undercutting competitors. It would also speed a surcharge that regulators expect will raise monthly bills less than $5. In exchange, the company will provide $50 million over the next two years to upgrade technology at Oregon's schools and $70 million over the next four years to upgrade technology infrastructure in rural areas. While critics may question US West's motives and the long-term effect on customers' pocketbooks, supporters say the money is much needed. Tom Cook of the Oregon Public Education Network, a state agency that works to provide service support to schools, says the $50 million is a way to jump-start technology improvements at state schools. "It's going to be a real boost," he says. "They need access to this type of resources but haven't been able to afford it." How the money will be spent on schools has largely been determined and included in the bill. The fate of the $70 million for rural upgrades isn't as clear. It will fall under the oversight of the Oregon Economic Development Department but no specific projects have been laid out. Some critics have argued that the $70 million US West will put for improvements is little more than a capital investment that will ultimately benefit US West. But regional manager Gary Miller contends the projects the money will fund are ones that the company couldn't make a business case for doing. "This is an investment that is over and above our construction budget," he says. "This isn't like business as usual. This is outside the normal business cases that you follow." That's what makes them so important, says Terry Edvalson of the Connection Oregon Communications Coalition, whose organization has helped shape the bill. Because the phone company couldn't make a strong enough business case to do the projects, rural communities like Ontario, Pendleton and others have suffered, the La Grande resident says. The bill will fund projects to level the playing field some. But Bob Jenks of the watchdog Citizen Utility Board fears it's the first step toward something less rosy: an era of overcharged phone customers. "People sort of sold out consumers to get money for schools," he says. Jenks feels the bill eliminates the PUC's ability to force US West to lower prices by freezing them at current levels. He notes that technological efficiency is reducing the company's expenses rapidly and that today's prices will be "ripoffs" within a few years. But Oregon Public Utility Commissioner Joan Smith disagrees. She says the bill will only change the way rates are set, not undermine the PUC's ability to control them. "It gives us better tools going forward" into the new era of competition, she says. Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA