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Digital Divide
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404513249
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Digital Divide
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Records of the National Economic Council (Clinton Administration)
James Kvaal's Files
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FOIA Number: 2019-0203-F
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the William J. Clinton
Presidential Library Staff.
Collection/Record Group:
Clinton Presidential Records
Subgroup/Office of Origin:
National Economic Council
Series/Staff Member:
James Kvaal
Subseries:
OA/ID Number:
20629
FolderID:
Folder Title:
DIGITAL DIVIDE
Stack:
Row:
Section:
Shelf:
Position:
S
18
2
8
3
THE IMPORTANCE OF BRIDGING THE DIGITAL DIVIDE AND
CREATING DIGITAL OPPORTUNITY FOR ALL AMERICANS
April 17, 2000
Access to computers and the Internet and the ability to effectively use this technology are becoming
increasingly important for full participation in America's economic, political, and social life. In recent
years, access to computers and the Internet has exploded. Unfortunately, there is strong evidence of a
"digital divide" -- a gap between those individual and communities that have access to these Information
Age tools and those who don't.
Better-educated Americans are more likely to be connected
69 percent of households with a bachelor's degree or higher have computers, compared to 16 percent
of those households that have not completed high school (Dept. of Commerce, "Falling Through The
Net," July 1999).
45 percent of households with a bachelor's degree or more have Internet access in the home,
compared to 14 percent with no only a high school diploma or GED (Dept. of Commerce, "Falling
Through The Net," July 1999).
The divide between high and low-income Americans is significant.
80 percent of households with an income of $75,000 or above have computers, compared to 16
percent of households earning $10,000 - $15,000 (Dept. of Commerce, "Falling Through The Net,"
July 1999).
60 percent of households with incomes of $75,000 or above have Internet access, compared to 12
percent earning $20,000 - $25,000 (Dept. of Commerce, "Falling Through The Net," July 1999).
Whites are more likely to be connected than African-Americans and Hispanics.
47 percent of white households have computers, compared to 23 percent of African-American and 26
percent of Hispanic households (Dept. of Commerce, "Falling Through The Net," July 1999).
53 percent of white, two-parent households with children earning more than $35,000 have Internet
access in the home, compared to 31 percent of African-American and Hispanic households (Dept. of
Commerce, "Falling Through The Net," July 1999).
However, there is virtually no gap in computer ownership between white and African- American
households earning more than $75,000. (Dept. of Commerce, "Falling Through The Net," July 1999).
Wealthier schools are more likely to be connected to the Internet than poorer schools
In wealthy schools (less than 11 percent of students eligible for free or reduced-price school lunch),
74 percent of classrooms are connected to the Internet, compared to 39 percent for the poorest schools
(71 percent or more of students eligible for free or reduced-price school lunch) (Fall 1999 data, Dept
of Education, National Center for Education Statistics, "Internet Access in U.S. Public Schools and
Classrooms," February 2000).
People with disabilities are less likely to have access to technology.
11 percent of people aged 15 and above with a disability have access to the Internet at home,
compared to 31 percent of people without disabilities (Current Population Survey, 1998 Computer
and Internet Use Supplement, as cited in H. Stephen Kaye, Computer and Internet Use Among People
with Disabilities, Disability Statistics Center, March 2000).
OF EDUCATION EDUC ATION
BRIDGING THE DIGITAL DIVIDE
PRESIDENT CLINTON'S FY 2001 EDUCATION BUDGET PROPOSAL
INTERNAL
UNITED STATES OF AMERICA
February 7, 2000
(IN THOUSANDS OF DOLLARS)
FY 2000
FY2001
INCREASE FROM
IMPACT STATEMENTS
Selected Discretionary Education Programs
APPROPRIATIO
REQUEST
FY2000
N
PROGRAMS THAT BENEFIT STUDENTS
Technology Literacy Challenge Fund. Helps provide
$425,000
$450,000
+$25,000
Would assist approximately 3,400 high-poverty districts to improve the capacity
students and teachers with computers, educational software,
of teachers in low-performing schools to use technology effectively in their
telecommunications, and technology training
classrooms to improve student achievement. Schools and districts would use
the funds to, among other things, provide training activities for teachers to
ensure that they are prepared to integrate technology effectively into curriculum
and to increase student access to advanced technologies.
Next Generation Technology Innovation: This new program
$170,000
+$170,000
Three new competitions are proposed for FY01: Advanced Technology
combines the best elements and builds on the success of the
Applications, Challenging Coursework Online, and the Mississippi Delta
Technology Innovation Challenge Grants and Star Schools
Initiative. $52.2 million is proposed for the first year Next Generation awards,
to expand knowledge about, and develop new cutting-edge
$3.8 million for evaluation, research and dissemination; and $113 million would
applications of, educational technologies and
be for continuation grants for awards made under the Technology Innovation
telecommunications for teaching and learning.
Challenge Grants and Star Schools.
Technology Innovation Challenge Grant: This program
$146,255
$0
-$146,255
Since FY95, 96 multi-district and multi-state projects have been funded in 46
is being combined under the Next Generation
states involving 744 partners, 381 businesses, 220 colleges and universities,
Technology Innovation Program. The request for Next
and 520 community-based organizations and government agencies
Generation includes funds for the continuation costs of
demonstrating the innovative uses of computers, networking and multimedia
Challenge Grants.
across the curriculum. These grants have generated $1.3 billion in matching
commitments. $146 million in FY00 will fund continuation grants, earmarks and
some new projects.
Star Schools: This program is being combined under
$50,550
$0
-$50,550
These projects have helped to improve instruction in mathematics, science and
the Next Generation Technology Innovation Program.
foreign languages, literacy skills and vocational education in under-served
Funding request for FY 2001 for next Generation
areas through partnerships that develop, construct, acquire, maintain and
includes funds for the continuation costs of Star Schools
operate telecommunications, audio, visual equipment and facilities. More than
projects.
one million students and their teachers in 50 states and territories participate in
this program.
Preparing Tomorrow's Teachers to Use Technology. Helps
$75,000
$150,000
+$75,000
Would support 175 new Capacity Building Awards to stimulate state and local
train new teachers to use technology in the classroom.
initiatives for campus-wide teacher education reforms, 100 new Implementation
awards for implementing full-scale innovations to improve preparation of
technology-proficient teachers, and 20 new Catalyst grants to provide technical
assistance and mentoring support to Capacity-building and Implementation
grantees.
Community Technology Centers. Funds technology learning
$32,500
$100,000
+$67,500
Would expand access to technology-based resources for low-income families
centers in low-income communities.
by bringing technology to public housing, community centers, libraries, and
other community facilities. The requested increase would expand the program
to an additional 280 low-income communities, and continue funding for 120
projects funded in previous years.
FY 2000
FY2001
INCREASE FROM
IMPACT STATEMENTS
Selected Discretionary Education Programs
APPROPRIATIO
REQUEST
FY2000
N
PROGRAMS THAT BENEFIT STUDENTS Cont'd
Tech Prep Education. Provides grants to States, which
$106,000
$306,000
+$200,000
Would increase the number of consortia working to create programs that
provide subgrants to consortia of local educational agencies
effectively link secondary and postsecondary institutions, integrate academic
and postsecondary institutions, to develop links between
and vocational courses, and prepare students for high-tech careers. States
secondary and postsecondary institutions, integrate
would use the $200 million increase to make competitive grants to consortia
academic and vocational education, and better prepare
with the best Tech-Prep plans and programs.
students to make the transition from high school to college
and from college to careers.
Learning Anytime Anywhere Partnerships. Supports access
$23,269
$30,000
+$6,731
Would support an additional 45 new projects to improve technology-based
to quality postsecondary education for underserved
learning opportunities for individuals, such as the disabled, dislocated workers,
populations through the use of technology.
those making the transition from welfare to work, and others who do not have
easy access to traditional campus-based postsecondary education.
$10,000
$10,000
--
Regional Technology in Education Consortia (R*TECs) This
The R*TECs provide professional development, technical assistance, and
program supports regional consortia that help states,
dissemination of information on the various types and effective uses of
districts, and schools integrate technology with teaching and
hardware, software, and electronic networks in order to help students meet
learning.
challenging academic standards.
PROGRAMS THAT BENEFIT ADULTS
FY2001
IMPACT STATEMENTS
Major Education Tax Proposals
REQUEST
College Opportunity Tax Cut. Would cover up to $5,000 of
$30 billion over ten years
Would augment the existing Lifetime Learning Tax Credit, extending the credit
education expenses in 2001 and 2002 and up to $10,000 in
percentage from 20 percent to 28 percent, giving families the choice of taking a
2003 and beyond to help make college more affordable for
credit or a deduction, and increasing the income phase-out ranges to make the
millions of American families. This benefit can be used by
benefit available to a wider range of families. The tax cut would phase out at
individuals interested in gaining new technology skills to
incomes between $50,000 and $60,000 for individuals and between $100,000
remain competitive in today's workforce.
and $120,000 for joint filers.
PROGRAMS TO IMPROVE FACILITIES
FY2001
IMPACT STATEMENTS
Major Education Tax Proposals
REQUEST
School Modernization Bonds. Provides new bonds with
A program that would authorize nearly $25 billion in additional bonds to build
interest paid by Federal tax credits to help local communities
$2.4 billion over 5 years
and modernize 6,000 public schools to accommodate record enrollments and
go much further in renovating and building needed schools
overcrowding and repair crumbling school facilities. Federal tax credits would
and address overcrowding.
pay the interest on two types of bonds: School Modernization Bonds (new) and
Qualified Zone Academy Bonds (current law).
FY 2000
FY2001
INCREASE FROM
IMPACT STATEMENTS
Selected Discretionary Education Programs
APPROPRIATIO
REQUEST
FY2000
N
School Renovation Loan and Grant Program. (Complements
$1,300,000
+$1,300,000
A new program that would provide funds to leverage about $6.7 billion in grants
tax-credit bond proposal under the Department of Treasury)
NEW
and loans to fund 8,300 renovation projects in 5,000 schools per year.
Education Rate (E-Rate): Provides schools and libraries
$2.25 billion is now available annually for this
In year one (January 1998-June 1999), the SLD distributed a total of $1.66
discounts on telecommunications services (such as phone
program administered by the Schools and
billion to 25,785 applicants (approx. 81% of public schools applied for funding).
service, internal connections, and Internet access).
Libraries Division (SLD) of the Federal
In year two the FCC voted to fund the E-Rate at $2.25 billion annually, which is
Communications Commission. The discounts
a $900 million increase over the previous year. In year two (July 1999-June
range from 20% to 90%, depending on poverty
2000), the SLD distributed a total of $1.9 billion to 31,127 applicants. In year
and geographic location; the average discount is
three, the SLD received 36,000 applications requesting a total of $4.72 billion in
60 percent.
funding.
Programs That Support Technology Development Across the Federal Government
Tax incentives to encourage private sector involvement. The budget proposes $2 billion over 10 years in tax incentives to encourage private
sector donation of computers, sponsorship of community technology centers, and technology training for workers, including:
Encouraging companies to donate computers. The President proposes to extend and expand the tax deduction that gives companies an
incentive to donate computers to schools, libraries and computer technology centers. This enhanced deduction allows companies to deduct more
than the cost of their donation. Under current law, this deduction applies to donations of computers to schools only and expires after the year
2000. The President's proposal would extend this provision through June 30, 2004 and expand it to donations to public libraries or community
technology centers in Empowerment Zones, Enterprise Communities, and high-poverty areas.
Promoting corporate sponsorship of schools, libraries and community technology centers. The President proposes tax relief to encourage
companies to sponsor schools and community technology centers in Empowerment Zones, Enterprise Communities, and targeted low-income
areas. The President's proposal would allocate credits for $16 million in corporate sponsorship to each of the 31 existing Empowerment Zones
and 10 proposed new Empowerment Zones and $4 million in corporate sponsorship for each of the more than 80 Enterprise Communities. In
total, the President's proposal would help support up to nearly $1 billion in annual sponsorships to help improve schools and community
technology centers.
Supporting technology training for workers. The President's proposal would provide targeted tax relief to encourage companies to provide
computer training, workplace literacy, or other basic education for employees who lack the basic skills to succeed in the modern workplace.
Companies would be allowed to take a 20 percent tax credit for up to $5,250 in annual expenses per employee. Eligible employees generally
would not have received a high school degree or its equivalent.
Public/private partnerships. The President's budget includes a new $50 million Department of Commerce pilot program to expand access to
computers and the Internet for low-income families and to give these families the skills they need to use these new Information Age tools effectively.
This new program will provide competitive grants to public-private partnerships at the local level.
Innovative applications of technology. President Clinton's budget will increase the investment in the Department of Commerce's highly-
successful Technology Opportunities Program (TOP) to $45 million - triple the current level of $15 million. Applications might include public
health information systems that raise childhood immunization rates in inner cities, tele-mentoring for at-risk youth, and electronic networks that
strengthen local communities by fostering communication and collaboration.
High-speed networks in underserved communities. High-speed Internet access is becoming as important to the economic vitality of a community
as roads and bridges are today. The President proposes a new $25 million program at the Department of Commerce and the Department of
Agriculture to accelerate, through grants and loan guarantees, private sector deployment of broadband networks in under-served urban and rural
communities.
Native Americans and information technology. The President proposes $10 million to prepare Native Americans for careers in information
technology and other technical fields. The National Science Foundation will support efforts by tribal colleges to increase the number of Native
Americans who are prepared to pursue careers in information technology and other technical fields.