Library Board Approves E-Rate Discount Amid Supreme Court Uncertainty
Board accepts $9,840 federal discount for internet service as libraries nationwide await ruling that could reshape E-Rate funding program.
Stillwater Library Board
The Stillwater Public Library Board approved acceptance of a $9,840 discount from the federal E-Rate program for monthly internet service from Chickasaw Telecommunications at its June 24 meeting. The decision comes as libraries across the nation await a Supreme Court ruling expected by late June that could significantly impact the future of E-Rate funding.
The E-Rate program provides annual discounts to help libraries and schools pay for internet service through federal funding. Stillwater's discount represents a continuation of an existing agreement with Chickasaw that can be extended for four years if favorable to both parties.
"Chickasaw has just been a great service for us," said Library Director Stacy DeLano during the meeting. "We expect to again hear about the Supreme Court decision on E-Rate in late June."
Two recent Supreme Court cases threaten to reshape how public libraries receive federal funds for internet access. The first, Wisconsin Bell v. United States ex rel. Heath, subjects E-Rate reimbursement requests to False Claims Act scrutiny, potentially exposing service providers and recipients to steep penalties for inaccurate claims.
The second case, FCC v. Consumers' Research, poses a more fundamental challenge to the program's existence. Petitioners argue that Congress improperly delegated taxing authority to the Federal Communications Commission and the Universal Service Administrative Company, which administers the Universal Service Fund that supports E-Rate.
If the Supreme Court strikes down the Universal Service Fund structure, E-Rate subsidies could be paused or completely overhauled, leaving libraries without federal support for internet service.
The fee is not a tax and is collected to support programs like E-Rate for libraries, schools, Lifeline for low-income households and the Connect America Fund that's used to increase high-speed broadband infrastructure in both urban and rural America.
DeLano expressed confidence that the decision will favor internet services, noting that legal commentary suggests a favorable outcome. "I have listened to a lot of legal commentary and that it isn't just ODL [Oklahoma Department of Libraries] but a lot of the legal commentary sounds like it is going to be favorable," she said.
The E-Rate program has provided crucial support for library internet services since its inception in 1997, helping institutions like Stillwater Public Library maintain public internet access that serves as a vital community resource. The program's uncertain future has library administrators nationwide preparing for potential changes to their technology budgets and services.
The library director has already prepared contingency plans in case the Supreme Court ruling proves unfavorable to the E-Rate program. "I have already have a contingency option for in case the decision is not favorable and so we'll be ready for it," DeLano told board members.
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While the internet service portion of E-Rate appears likely to survive, DeLano noted that the newer Wi-Fi hotspot funding program faces greater uncertainty. The federal government began funding library hotspot programs this year, but legal experts believe this component could be discontinued even if the broader E-Rate program continues.
Stillwater Public Library chose not to participate in the federal hotspot program due to concerns about long-term funding stability. "We chose not to go that route because we don't believe that that's necessary, do not feel confident enough in the long term federal funding of that program," DeLano explained.
Instead, the library uses Friends of the Library funds for hotspot programs when needed. During recent wildfire emergencies, the library requested emergency funds from the Friends organization to provide hotspots for another year, which DeLano described as potentially a better funding option than relying on federal support.
The library director expressed concern about the loss rates associated with hotspot programs, noting that a 30% loss rate represents "a very high amount of loss" that she prefers not to burden taxpayers with supporting.
Board members unanimously approved the E-Rate discount acceptance after brief discussion. The vote followed the board's executive session, during which members approved a 3% salary increase for DeLano effective July 1.
The library continues to operate in a temporary reconfiguration while completing fire suppression system inspections in its main building. Staff plans to move back into the main facility on July 4, with about 14 employees agreeing to work the holiday to reshelve approximately 20,000 books in preparation for reopening July 5 after the holiday closure.
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