A r c h i v e d  I n f o r m a t i o n

What is the Technology Literacy Challenge Fund?

The Technology Literacy Challenge Fund provides formula grants to States to accelerate the implementation of state-wide educational technology plans by providing financial assistance through the States to school systems. State education agencies and local education agencies are encouraged to use this assistance to leverage additional support from business and industry and other public and private entities, including museums, libraries, and institutions of higher education to use technology to improve America's schools.

What is the purpose of the Technology Literacy Challenge Fund?

The purpose of the Technology Literacy Challenge Fund is to provide resources to speed the implementation of state-wide strategies designed to enable all schools to integrate technology fully into school curricula, so that all students become technologically literate, with the reading, math, science, and other core academic skills essential for their success in the 21st Century. Technology also can be used to connect teachers and parents to work together, link students to careers, colleges, and community resources and provide extended learning opportunities for students after school and during the summer. A key purpose of the program is to enable the States to assist school systems that have the highest numbers or percentages of children in poverty and demonstrate the greatest need for technology.

What are the goals of the Technology Literacy Challenge Fund?

The Fund provides financial assistance to school systems for a wide range of activities to strengthen instruction through the use of technology. It is one of a variety of programs that will assist State and local partners in meeting the following goals: (1) All teachers will have the training and support they need to help all students learn through computers and through the information superhighway; (2) All teachers and students will have modern computers in their classrooms; (3) Every classroom will be connected to the information superhighway; and (4) Effective and engaging software and online resources will be an integral part of every school curriculum.

How may the Technology Literacy Challenge Fund be used to achieve the four goals?

The Department anticipates that States will build on partnership efforts with both governmental and non-governmental entities as provided for under Section 3133 of Title III of the Elementary and Secondary Education Act. The State technology plan must include a description of the long-term strategies for financing education technology in the State, and discuss how business, industry, and other public and private agencies, including libraries, library literacy programs, scientific and cultural institutions, and institutions of higher education can participate in the ongoing planning, implementation, and support for the plan. States, in preparing this plan, are encouraged to take into account the four goals.

How is the Technology Literacy Challenge Fund related to other federal technology initiatives?

The President's Educational Technology Initiative incorporates several elements which together strive to achieve the vision of making all children technologically literate by the dawn of the 21st century. One element, of course, is the Fund itself, which provides grants to States to develop and implement long-term strategies for financing technology at the local level. Other elements include the 21st Century Teachers Initiative, which is recruiting 100,000 teachers to voluntarily train 500,000 teachers on how to use technology in the classroom; NetDay 96 events, which partner private industry, parents and community volunteers with State and local educational agencies to wire schools and classrooms; Technology Innovation Challenge Grants, awarded to consortia to stimulate effective and innovative applications of new learning technologies; Tech Corps, which is a national non-profit organization of technology volunteers funded by the business community to advise and assist schools with integrating technology into the classroom; the American Technology Honor Society whose student members assist teachers and other educators expand their schools' use of technology; and finally, the Telecommunications Act of 1996 and the Universal Service Trust Fund provide further opportunities to reach the goal of connecting every school and classroom to the information superhighway.

How can technology help States with school reform?

At the heart of successful school reform is the principle that all students can learn to challenging academic standards. To achieve this, several critical elements, including integrating technology into the classroom to improve teaching and learning, are essential. Other elements include: (1) an engaging and effective curriculum; (2) learning the basics including reading independently and well by the end of the third grade; (3) high expectations for all children; (4) meaningful and ongoing teacher education and professional development; (5) safe and drug-free learning environments; (6) extending learning time beyond the regular school day and into summers; (7) active participation by parents, teachers, and communities; and (8) connections to promising careers and college preparation. Technology can play an important role in contributing to and supporting the accomplishment of these respective reform efforts.

Under what authority will the Technology Literacy Challenge Fund be implemented?

The Technology Literacy Challenge Fund will be implemented under the provisions of Title III, Part A, Subpart 2 of the Elementary and Secondary Education Act (ESEA).

In addition to Title III, Subpart 2 of Part A of the ESEA, what other statutory and regulatory authorities will apply to this program?

In addition to Subpart 2 of Part A of the ESEA, recipients of funds under this program should be aware of the following statutory requirements: the definitions set out in section 3113 of the ESEA and in Title XIV of the ESEA, which establishes general provisions for all programs authorized under the ESEA. The Education Department General Administrative Regulations, in particular, Parts 76, 77, 80, 82, 85, and 86, also apply to this program.

Does the Department plan to issue new regulations for this program?

No. This guidance, together with the authorizing statute and appropriation, and the existing regulations that apply, are sufficient to administer the Fund.

What entities are eligible for funds under the Technology Literacy Challenge Fund?

The Department makes grants to States; States make grants only to school districts. A school district can apply as a member of a consortium, which may include other school districts, institutions of higher education, businesses and industries, intermediate educational units, libraries, scientific and cultural institutions, and other appropriate educational entities. A school district must serve as the primary applicant and the administering agent. If a State chooses not to apply for funds, local educational agencies within that State may apply directly to the Department to receive grants through a competitive process. A discussion of grants to local educational agencies if a State does not apply is presented later in this non-regulatory guidance.

How are allocations to States determined?

Funds are allocated to States proportionate to their share under Part A of Title I of ESEA, but with a minimum allocation to any State of one-half of one percent of the amount appropriated. Pursuant to the 1997 Appropriation Act, one-half of one percent is distributed among all of the outlying areas.

What level of funding can States expect to receive in the first year of the program?

The fiscal year 1997 appropriation is $200 million. The size of State allocations ranges from the minimum of $1 million to over $20 million. In addition to allocations to States, one-half of one percent is set aside for the outlying areas (this level is specified in the appropriation), and one-half of one percent for the Bureau of Indian Affairs. A list of the allocations for each State is included in this package.

Is financial assistance provided under the fund used to supplement State and local funds?

Yes. The statute authorizing this program provides that local educational agencies must assure that financial assistance provided under this part will "supplement, not supplant, State and local funds. " See Section 3133(2)(J) of the ESEA.

When do funds become available to the Department for award to the States?

Funds became available on October 1, 1996, and will be available to the Department for award to the States until September 30, 1997. Unlike most State grant programs in the Department, the Technology Literacy Challenge Fund is current-funded, not forward-funded, which means that early applicants may be able to receive funding by December of 1996.

When can a State submit an application for funds?

Applications will be accepted from the date of this notice until March 31, 1997. States are strongly encouraged to submit their applications early so that they can begin awarding funds to local education agencies. States, and their local education agency subgrantees, must obligate all funds by September 30, 1998.

Once an award is made to a State, how long will the State and its local education agency subgrantees have to obligate funds?

Funds must be awarded by the Department to State education agencies by September 30, 1997. States, and their local education agency subgrantees, must obligate all funds by September 30, 1998. This means that State subgrants to local education agencies must be made early enough to allow the local education agencies sufficient time to obligate those funds.

What must a State application contain?

In addition to the information and signatures required in the application form, the application must include a statewide education technology plan that describes (1) long-term strategies for financing educational technology in the State, (2) how business, industry, other public and private agencies, including libraries, library literacy programs, scientific and cultural institutions, and institutions of higher education can participate in the ongoing planning, implementation, and support for the plan; and (3) how the State will assist those local education agencies that have the highest number or percentage of children in poverty which demonstrate the greatest need for technology. Section 3133 of the ESEA fully describes the application requirements. The Secretary urges States to adopt, as a goal for the State, the speedy extension of the full benefits of educational technology to all of the schools in the State, and to include in the State's plan benchmarks for accomplishments towards that goal, and to annually report to the public on progress toward the benchmarks.

How will applications be reviewed?

Applications will be processed and reviewed on an individual basis soon after they are received in the Department. Awards will be announced on a rolling basis as applications are approved.

How does a State distribute funds to school districts?

Grants to school districts must be awarded on a competitive basis. Distributing funds to local education agencies on the basis of a formula, such as the Title I formula under the ESEA, could result in some awards that would not be of sufficient size, scope, and quality to carry out the purposes of the Fund.

What does a school district or local education agency application to the State contain?

Applications to the State from a local education agency must include a strategic three- to five-year plan that addresses the types of technologies to be acquired, how they will be integrated into the curriculum, collaborative efforts to maximize the use of technology, professional development, existing sources of supporting resources, projected costs, and mechanisms to coordinate all technology funds. (See Section 3135 of ESEA, which sets out in full the requirements for local education agency applications.)

May a local education agency, that has developed a comprehensive education improvement plan under the ESEA or Goals 2000 substitute that comprehensive plan for an application under this program?

An existing comprehensive plan may be submitted if such a plan "would further the purposes" of the Fund (Subpart 2 of Part A of Title III of the ESEA). The State should ensure that local education agencies that wish to rely on this method have comprehensive plans that contain enough information to be properly evaluated in the competitive process, including to the extent needed to address the State technology plan, information on the four goals and the many other resources now available to support this effort. Any subgrant funded under this program, including those based on comprehensive plans developed under ESEA or Goals 2000, must be of sufficient duration, size, scope and quality to effectively carry out the activities described in section 3134 of the ESEA.

What does a State consider in competitively selecting local education agency subgrantees?

The State selects subgrantees that propose projects that are of sufficient duration, size, scope, and quality to: develop, adapt, or expand their use of technology to support school reform; improve student learning; acquire connectivity linkages, resources, and services; provide professional development; connect to wide area networks; and provide educational services for adults and families. (See Sections 3132 and 3134 of the ESEA.) The local education agency application must also be consistent with the systemic state-wide plan. In addition to other factors it deems relevant, the State shall also take into account, consistent with its application, the statute's goal of assisting those local educational agencies with the highest rates or numbers of children in poverty and that demonstrate the greatest need for technology to improve teaching and learning.

Can consortia be created to apply for subgrants?

Yes, Section 3135(d) of the ESEA provides that local educational agencies may apply for financial assistance as part of a consortium with other local educational agencies, institutions of higher education, intermediate educational units, libraries, or other educational entities appropriate to provide local programs. State educational agencies may assist in the formation of such consortia at the request of the local educational agency. The Department encourages States to provide such assistance because it represents an opportunity for local educational agencies to pool their resources in creative ways that have the potential to broaden their impact on teacher training, software procurement, and other elements of the plan.

What are some examples of how States can go about meeting the statute's goal of providing assistance under this program to LEAs that have the highest numbers or rate of children in poverty and demonstrate the greatest need for technology?

There are many ways that a State could go about meeting this goal. For example, a State could establish criteria for awarding subgrants to LEAs that include the following: percentage or number of children in poverty and need for technology. A State may also award a specific number of points for LEAs that have high percentages or numbers of children in poverty that exceed a certain level. A State may also reserve a certain number of subgrants for those LEAs that have the highest rates or number of children in poverty and the greatest need for technology.

How may a local education agency use its funds?

To the extent possible, funds shall be used by local education agencies for five major purposes: (1) apply technology to support school reform; (2) acquire hardware and software to improve student learning; (3) acquire connections to telecommunication networks to obtain access to resources and services; (4) provide ongoing professional development in the integration of technology into improvements of the school curriculum; and (5) provide better educational services for adults and families. Section 3134 of the ESEA sets out in full how local education agencies are to use funds under this program.

If a State chooses not to apply, may local education agencies in that State still receive funds?

Yes. The appropriation specifies that the Secretary may make awards competitively to local education agencies in States that choose not to participate. Should any State not participate, the requirements for the competition for that State's allocation will be published in the Federal Register.

How can a local education agency's application and activities support the President's goals?

The application requirements for local education agencies are consistent with the goals of the President's challenge to the Nation for educational technology. For example, one of the President's goals is to provide all teachers the professional development and support they need to help all students learn through the use of computers and the information superhighway. Consistent with this goal, local long-range plans must include a description of how the local education agency will ensure ongoing, sustained professional development to further the use of technology in the classroom or library media center, and a description of the supporting resources such as services, software, and print resources required to ensure successful and effective use of technology to improve teaching and learning.

To whom must a State provide technical assistance?

The State must identify and provide technical assistance to those local educational agencies in the State that have the highest number or percentage of children in poverty and that demonstrate the greatest need for technical assistance in developing their application. See Section 3132 (b) of the ESEA.

How does the Act provide for the participation of children enrolled in private schools?

Local educational agencies or consortia that receive awards from their State educational agencies shall, after timely and meaningful consultation with appropriate private school officials, provide children enrolled in private schools, as well as their teachers and other educational personnel, with an opportunity to participate on an equitable basis in the Technology Literacy Challenge Fund.

Can States use a portion of their allocation for administrative expenses?

Yes, Section 3115 of the statute permits both SEAs and LEAs to use up to five percent of their grants for administrative costs or technical assistance.

What reporting and evaluation will be required of grantees and subgrantees?

The Department strongly believes that information on the impact and results of Federal programs should be shared with the public, and encourages States to establish benchmarks as part of their plans, and to report to the public on their progress annually. For its part, the Department is required to develop procedures for State and local evaluations, and must submit a summary of State evaluations to the Congress in 1998. Local education agencies are required, as part of their application to the State, to describe a process for the ongoing evaluation of how the technology acquired will be integrated into improving school curriculum and increasing student achievement. The Government Performance and Results Act (GPRA) applies, and the Department will be developing performance indicators cooperatively with States.

The Department is in the process of developing an evaluation strategy for the Technology Literacy Challenge Fund. One of the primary components of the evaluation relies on documenting the efforts at the State and local levels. For example, in this first year of the program, the Department will conduct an examination of the process and procedures used at the State level to implement the program; analyze the types of schools and school districts receiving funding; document the specific needs which the Fund will address at the local level; review the role and impact of private sector participation with States and locals; and assess the extent to which assistance is provided to districts serving the highest number or percentage of students living in poverty and with the greatest need for technology. In addition to these activities, in subsequent years the Department will also evaluate the extent to which States and locals are achieving the four goals of the Technology Literacy Challenge Fund. Consequently, the Department expects to receive annual performance reports from the States each year, beginning in 1998.

How will the Department provide technical assistance and share information about technology initiatives at the national, State, and local levels that represent innovative approaches such as those involving public-private partnerships?

The Department plans to make information available to the States about innovative approaches and promising practices through regular communication online and through meetings to be held regionally throughout the country. The Regional Technology in Education Consortia (R*TECS), which are funded by the Department, have begun to work with States and other entities, providing technical assistance and disseminating information about resources, to promote the effective use of technology in education. Other Department-funded entities, e.g., the Regional Educational Laboratories, also have expertise in the integration of technology into school curricula, as do the Eisenhower National Clearinghouse and the Eisenhower Regional Consortia.

The Department plans to make selected examples of innovative approaches, culled from statewide educational technology plans, available on its website (http://www.ed.gov/). In addition, States are strongly encouraged to put their plans on their own websites, thereby making it possible for the Department's website to link the Nation to the plans. The Department will continue to link States, through the Department website, to other models and approaches, especially those that bring together public- and private-sector partnerships, such as the Statewide NetDay events, Tech Corps activities, and other initiatives. Also, as state plans are approved, the Department will make them available upon request.

[Application Instructions]

[FY 1997 State Allocations]